Hudson Technologies Q2 2025: Unraveling Contradictions in HFC Pricing, Reclamation Growth, and DLA Contract Volumes

HFC pricing stability and trends, Reclamation business growth, Reclamation and refrigerant pricing, Pricing and inventory levels, DLA contract volume are the key contradictions discussed in Hudson Technologies' latest 2025Q2 earnings call.



Sales Volume and Revenue:
- Hudson Technologies reported revenues of $72.8 million for Q2 2025, with a 3% decrease compared to the previous year.
- The decline in sales volume was partially attributed to a late start to the summer weather, especially in the Northeast and Midwest regions.

Refrigerant Pricing and Profitability:
- Hudson observed a sequential increase in refrigerant pricing during Q2, with HFC 410A reaching $8 per pound, contributing to a gross margin of 31%.
- The increase in pricing was influenced by tariff increases and a lift in nearly all refrigerant pricing.

Market Opportunities and Refrigerant Demand:
- The company emphasized the long-term growth opportunity in the phase-down of HFC refrigerants, with reclaimed HFCs becoming increasingly necessary to support the installed base of units.
- This opportunity is driven by the current phase down of HFC refrigerants and the long-tail demand for HFC refrigerants due to the lifespan of HFC equipment.

DLA Contract and Market Positioning:
- Hudson Technologies is entering its 10th year serving the DLA and DoD needs, with information on a new contract award expected later this year.
- The company maintains a strong market position through its high level of success in on-time performance and its enhanced refrigerant recovery capabilities.