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KB Home (KBH) Expands Sustainable Home Products With Microban

In line with its strategy of sustainable homebuilding, KB HomeKBH will now provide antimicrobial product protection - Microban - for its interior door hardware selections.

The company will be providing Microban antimicrobial product protection in association with long-time partner Kwikset, a leading residential lock manufacturer. Kwikset products with Microban protection incorporate an antimicrobial coating that prevents the growth of bacteria on door hardware.

KB Home aims to offer sustainable and affordable homes, products and features that minimize homeowners' carbon footprint and energy usage as well as conserve natural resources. The company's sustainability initiative - started in 2007 - focuses on incorporating sustainable home features at little or no additional charge that could help lower the long-term cost for home owners.

Under this eDifference platform, the company focuses on energy efficiency, water conservation, healthier indoor environment, smart home capability and waste reduction.

Apart from providing sustainable features, the company's Built to Order approach provides buyers the flexibility to design their own homes. In this approach, construction is initiated only after a purchase agreement has been executed. Such an approach appeals particularly to high-income consumers who enjoy the flexibility to design their homes and are ready to pay more for the same, thus driving the average selling price and revenues.

Such innovative and sustainable features along with the Built to Order approach lend KB Home a competitive advantage over peers like D.R. Horton DHI , NVR NVR and Lennar LEN .

If we look at KB Home's recently released earnings, the company's total revenues were $4.4 billion in fiscal 2017, up 21.5% year over year. Deliveries increased 11% and average selling price was up 9%.

Also, KB Home's four strategic initiatives are expected to drive profit and revenues further in 2018. These initiatives include boosting community count, achieving higher revenue per community, increasing asset efficiency and return on capital invested. The company focuses on profit per unit by improving cost efficiencies without compromising on the quality of products.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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