Did Hudson Technologies beat or miss consensus estimates last quarter?

What is Hudson Technologies's gross profit margin?

What is Hudson Technologies's latest dividend and current dividend yield?

What does Hudson Technologies do and what are its main business segments?

What were the key takeaways from Hudson Technologies’s earnings call?

What is the revenue and EPS growth rate for Hudson Technologies year over year?

What guidance did Hudson Technologies's management provide for the next earnings period?

What is the market's earnings forecast for Hudson Technologies next quarter?

- **20% Revenue Growth**: Driven by 18% volume and 2% price increase, with 32% gross margin (up 630 bps YoY).
- **$210M DLA Contract Renewal**: Solidifies military refrigerant supply partnership since 2016.
- **EPA Data Insights**: 2024 HFC inventory down 18%, but supply-demand imbalance until 2029 due to AIM Act phase-down.
- **M&A Focus**: Seeking service businesses to diversify revenue and reduce seasonality.
- **Cash Position**: $90 million cash on hand for strategic initiatives.

**【Lead Director Remarks】**
- Brian Coleman stepped down as CEO, with the board in final stages of CEO search for candidate with alternative skill sets (e.g., M&A expertise, organic growth strategies).
- Interim CEO Brian Bertolini will lead until new CEO is appointed.

**【Interim CEO/CFO Financial Summary】**
- Q3 2025 revenue: $74 million (+20% YoY), driven by 18% volume growth and 2% price increase.
- Gross margin: 32% (up 630 bps YoY), reflecting higher HFC pricing and cost control.
- Net income: $12.4 million (+59% YoY), with $90 million cash on hand.
- Renewed $210 million DLA contract for refrigerant supply to U.S. military, extending partnership since 2016.

**【Sales & Marketing Highlights】**
- Q3 sales volume growth offset slow start to 2025 season; reclamation activity grew in line with industry (+19% YoY).
- EPA data shows 2024 HFC inventory decline of 18%, but supply-demand imbalance expected until 2029 due to AIM Act phase-down.
- A2L refrigerants (R-32, R-454B) saw successful rollout in 2025, with strong supply chain execution.

**【Q&A Key Highlights】**
- **CEO Skill Set**: New CEO should have M&A experience and ability to diversify into adjacent services (e.g., HVAC field services) to reduce seasonal revenue volatility.
- **HFC Pricing Outlook**: 2026 average HFC prices expected to remain consistent with 2025 levels, despite near-term volatility from HFO supply chain issues.
- **M&A Strategy**: Prioritizing acquisitions of service businesses to expand customer touchpoints and reduce reliance on seasonal refrigerant sales.
- **DLA Impact**: Government shutdown caused minor Q4 2025 revenue delay, but contract remains stable at $30-35 million annual contribution.
- **A2L Growth**: A2Ls will become core business as new HVAC systems adopt lower-GWP refrigerants, complementing long-term R-410A demand.


Hudson Technologies, Inc. (HDSN) Q3 2025 Earnings Call Transcript

- **Q2 Results**: $72.8M revenue, 31% gross margin, $10.2M net income, despite 3% sales volume decline.
- **Pricing Dynamics**: HFC 410A at $8/lb, stable with Q3 upside; A2L aftermarket volumes poised to double in 2026.
- **Strategic Focus**: Reclamation growth, $84.3M cash, $4.5M share buybacks, and DLA contract renewal efforts.
- **Risks**: Regulatory uncertainty, seasonal Q4 weakness, and supply chain normalization for A2L systems.

**【CEO Summary Section】**
- Q2 2025 revenue of $72.8 million with a 31% gross margin, despite 3% YoY decline in sales volume due to delayed summer weather.
- HFC 410A pricing reached $8/lb, driving margin improvement, though slight moderation expected in Q3.
- Emphasis on reclamation business growth, with recovered refrigerants expected to trail sales by one quarter.
- Full-year gross margin target maintained at mid-20%, with potential upside from Q3 performance.
- $2.7 million in stock repurchases during Q2, reflecting capital allocation strategy.

**【CFO Financial Commentary】**
- GAAP net income of $10.2 million ($0.23/diluted share), up 6% YoY, driven by gross profit growth offset by higher SG&A expenses.
- Operating income of $12.7 million, slightly below Q2 2024 level, with net interest income improving due to unlevered balance sheet.
- Cash balance of $84.3 million, no debt, supporting organic growth and share buybacks ($4.5 million year-to-date).

**【Q&A Key Highlights】**
- **A2L Refrigerant Growth**: Anticipate doubling of aftermarket A2L (454B/32) volumes in 2026 as 410A installations phase out, with current demand driven by repair vs. replace trends.
- **HFC Pricing Stability**: Current HFC 410A price around $8/lb, stable with slight volatility from tariffs; Q4 expected to be seasonally slow.
- **Reclamation Momentum**: Encouraged by Q3 activity, though exact volumes not disclosed; USA acquisition fully integrated into reclamation efforts.
- **DLA Contract Update**: 5-10 bidders for new 10-year DLA contract; Hudson's on-time delivery track record a strength, but no visibility on timing.
- **Regulatory Environment**: EPA evaluating AIM Act; Hudson actively engaging to highlight reclamation's importance for unit longevity and cost savings.

Hudson Technologies, Inc. (HDSN) Q2 2025 Earnings Call Transcript

- **Revenue decline but volume growth**: Q1 2025 revenue down 15% YoY ($55.3M) due to 40% HFC price drop, but sales volume up 20%.
- **Gross margin recovery expected**: 22% in Q1, targeting mid-20% for 2025 as HFC 410A prices stabilize above $6/lb.
- **Reclamation business accelerates**: Q1 reclaim volume up double-digit YoY, driven by AIM Act phase-down and state mandates.
- **Tariff-related challenges**: Higher steel and refrigerant tariffs impacting margins, with costs being passed through to customers.
- **Financial strength**: $81M cash, no debt; $4.5M stock buybacks YTD under $10M authorization.

**【CEO Opening Remarks】**
- Q1 2025 revenue: $55.3M (-15% YoY) due to 40% decline in HFC pricing, offset by 20% increase in sales volume (partially driven by USA Refrigerants acquisition). 
- Gross margin: 22% (vs. 33% Q1 2024), expected to improve to mid-20% for full year amid stabilizing prices post-$6/lb HFC 410A threshold.
- Tariffs and supply chain costs impacting margins, with higher tariffs on steel and refrigerants being passed through to customers.
- AMAX Technology Transition Rule causing supply-demand imbalance for next-gen refrigerants (e.g., 454B, 32), with production ramping up to meet demand by late 2025.
- $81M cash balance, no debt; $4.5M stock buybacks YTD.

**【CFO Financial Highlights】**
- Q1 2025 financials: 
  - Revenue: $55.3M (-15% YoY)
  - Gross profit: $12.1M (22% margin)
  - Operating income: $3.1M (-74% YoY)
  - Net income: $2.8M ($0.06 EPS)
- SG&A: $8.2M (+4% YoY) due to marketing expenses.
- DLA contract performance consistent with $36M annual run rate.

**【Kate Houghton: Market Opportunities】**
- Reclamation business growth: Q1 reclaim volume up double-digit YoY, driven by:
  - AIM Act phase-down of HFCs (20% annual reduction)
  - State mandates for reclaim use in municipal buildings
  - Hudson's recovered refrigerant supply network expansion (e.g., USA Refrigerants acquisition)
- Industry transition to low-GWP refrigerants creating long-term demand for reclaim services (20-year HFC equipment lifecycle). 
- Educational efforts to promote field recovery practices (e.g., HVACR events, technician training sessions).

**【Q&A Key Takeaways】**
1. **Pricing Dynamics**: 
   - Short-term price increases ($6+/lb HFC 410A post-Q1) driven by tariffs and supply chain disruptions.
   - Long-term stability expected as new production capacity comes online.
2. **Cylinder Challenges**: 
   - Higher costs for A2L-compatible cylinders (left-handed valves) due to valve manufacturer lead times.
   - Disposable cylinder shortages for small-scale A2L installations.
3. **Reclamation Acceleration**: 
   - Q1 reclaim growth double-digit YoY, sustained by contractor education and circular supply chain partnerships.
4. **DLA Contract**: 
   - 2025 sales expected to match 2024 $36M annual run rate.
5. **Inventory Normalization**: 
   - Near normalized inventory levels as of Q1 2025.
6. **Share Repurchases**: 
   - $10M buyback authorization, $4.5M utilized YTD.


Hudson (HDSN)-7 May 25-2025 Q1 Earnings call transcript

- **Revenue near target**: $237M vs. $240M revised goal, 28% gross margin achieved
- **HFC price volatility**: 45% YoY decline offset by diversified sales channels
- **Cash strength**: $70M cash, $8.1M stock buybacks
- **Regulatory tailwind**: 2029 mandate for reclaimed refrigerants in federal sector
- **Reclamation growth**: 18% increase in 2024, strategic asset acquisition
- **2025 outlook**: Mid-20s gross margin, normalized DLA contract at $30-35M
- **Risks**: Upstream inventory overhang, cylinder cost inflation

**【CEO Opening Remarks】**
- Full year 2024 revenue: $237 million (slightly below revised target of $240 million)
- Achieved revised full year gross margin target of 28%
- Cash position: $70 million (no debt) with $8.1 million in stock repurchases
- 2024 HFC pricing decline up to 45% vs. 2023, but diversified sales channels mitigated impact
- 2025 gross margin expected in mid-upper 20s range
- EPA refrigerant management rule mandates use of reclaimed refrigerants in certain sectors starting 2029
- Reclamation activity increased 18% in 2024; strategic acquisition of USA Refrigerants strengthened recovery network

**【CFO Financial Review】**
- Q4 2024 revenue: $34.6 million (-23% YoY) due to lower HFC prices and DLA contract revenue
- Q4 gross margin: 17% (vs. 31% YoY) reflecting price declines
- Full year 2024 operating income: $29.3 million (vs. $78.2 million YoY)
- 2024 SG&A expenses: $33 million (+8% YoY) including $1 million in strategic acquisition costs
- Net income: $24.4 million ($0.54 EPS) vs. $52.2 million ($1.15 EPS) in 2023

**【Q&A Key Takeaways】**
- 2025 DLA contract revenue expected to normalize at $30-35 million
- Tariffs on Chinese HFCs remain at 200-285%, but cylinder costs may rise due to steel tariffs
- Transition to low GWP equipment will create near-term supply chain disruptions
- R-22 demand stable despite long-term decline; HFC 410A volumes expected to remain strong
- No current plans to license portable distillation technology overseas
- Unlikely Congress will modify HFC production caps under AIM Act

Hudson (HDSN)-6 Mar 25-2024 Q4 Earnings call transcript

Hudson (HDSN)-4 Nov 24-2024 Q3 Earnings call transcript

Hudson (HDSN)-6 Aug 24-2024 Q2 Earnings call transcript

Hudson (HDSN)-1 May 24-2024 Q1 Earnings call transcript

Hudson (HDSN)-6 Mar 24-2023 Q4 Earnings call transcript

Hudson (HDSN)-1 Nov 23-2023 Q3 Earnings call transcript

- **Revenue decline**: Q2 2023 revenue $90.5 million (-13% YoY) due to moderating HFC prices.
- **Gross margin stabilization**: 40% in Q2 (vs. 55% in 2022), with DLA/carbon credit contributions boosting margins.
- **Sustainability leadership**: Carbon-neutral reclamation facilities; EMERALD refrigerants recognized as 2023 Top Product.
- **Debt reduction**: Total debt down 31% to $32.5 million, saving $6.8 million in interest.
- **Regulatory tailwind**: EPA's 40% HFC reduction rule positions Hudson to benefit from reclaimed refrigerant demand.
- **Customer focus shift**: Strategic customers prioritizing recovery/reclamation over low-cost refrigerants.


**【CEO Summary Section】**
- **Revenue and Gross Margin**: Q2 2023 revenue of $90.5 million (-13% YoY) reflects moderating HFC prices. Gross margin was 40% (vs. 55% in Q2 2022), driven by narrowing inventory-cost/sale-price gap. DLA and carbon credit revenue boosted margins to 40% (vs. 38% without these contributions).
- **Regulatory Outlook**: EPA's 40% reduction in 2024-2028 HFC allowances positions Hudson to benefit from reclaimed refrigerant demand. Company expects long-term gross margin target of ~35%.
- **Sustainability Initiatives**: Achieved carbon neutrality at reclamation facilities; EMERALD refrigerants named 2023 Top Product by Environment + Energy Leader. Expanded service offerings to support industry transition to greener cooling systems.
- **Customer Strategy**: Focused on strategic customers prioritizing recovery and reclamation over low-cost refrigerants. Q4 2023 may see increased activity as customers anticipate 2024 HFC supply constraints.

**【CFO Financial Commentary】**
- **Profitability**: Operating income of $27.7 million (-44% YoY), net income of $19.2 million ($0.42 EPS). Tax rate increased to 26% (from 16% in 2022 due to valuation allowance release).
- **Cash Flow and Debt**: Generated $10.6 million in operating cash flow. Reduced total debt by 31% to $32.5 million (from $46.8 million at year-end 2022). Interest savings from debt reduction: $6.8 million since March 2022 refinancing.
- **Liquidity**: $83 million in cash and revolver availability. Focused on deleveraging, inventory management, and strategic opportunities.

**【Q&A Key Highlights】**
- **HFC Pricing Dynamics**: Q2 2023 prices ~$10/ton (softening due to delayed cooling season demand and allowance balancing). Expect tightening supply in 2024 as 40% HFC production reduction takes effect.
- **Customer Behavior**: Strategic customers focused on recovery/reclamation driving growth. Limited pre-buying for 2024 due to storage constraints; most buying will occur during 2024 cooling season.
- **EPA Rulemaking**: Court struck down QR code tracking rule but upheld EPA's authority under AIM Act. Future rulemakings likely to promote reclamation. Industry collaboration with EPA to limit illegal imports.
- **Partnerships**: Lennox partnership progressing well, supporting authorized dealers with sustainable refrigerant solutions. Seeking similar relationships to expand recovery/reclamation services.


HDSN

HDSN fundamentals

Earnings Call

You can ask Aime