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Mar 31, 2023
Hudson Q1 2023 Earnings Report
Hudson reported a decrease in revenue due to decreased selling prices and lower sales volume, while maintaining strong profitability.
Key Takeaways
Hudson Technologies reported first quarter 2023 results with revenues of $77.2 million, an 8% decrease compared to the prior year. Gross margin was 39% compared to 54% in the first quarter of 2022. Net income was $15.5 million, or $0.34 per basic share.
Revenues decreased by 8% to $77.2 million due to lower selling prices and sales volume.
Gross margin was 39%, moderating from the unsustainably high 54% in Q1 2022 but still ahead of the long-range target.
Net income was $15.5 million, or $0.34 per basic share.
The company is focused on driving momentum and believes it is well-positioned for continued strong performance.
Hudson
Hudson
Forward Guidance
Hudson anticipates that the AIM Act's phasedown schedule will benefit their business by driving higher demand for reclaimed refrigerants as virgin HFCs become constrained. They are focused on meeting the refrigerant needs of the growing installed base of cooling and refrigeration systems.
Positive Outlook
- Leadership position in the industry
- Operational excellence
- Proven distribution network
- Longstanding customer relationships position
- Confidence in driving continued strong performance
Challenges Ahead
- Tough comparison to the extraordinary gross margin performance during the 2022 selling season
- Decreased selling prices for certain refrigerants during the period
- Lower sales volume in the quarter as compared to the first quarter of 2022
- Virgin HFC production and consumption allowances mandated by the AIM Act remains in place
- 2024, a 40% baseline reduction in HFCs will begin