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Mar 31, 2025
Hudson Q1 2025 Earnings Report
Reported First Quarter 2025 results with a decrease in revenue and net income compared to the prior year, driven by lower refrigerant market pricing.
Key Takeaways
Hudson Technologies reported a decline in first-quarter 2025 revenue and profitability due to lower refrigerant market pricing, despite a slight increase in sales volume. The company maintained a strong balance sheet with $81 million in cash and no debt.
First quarter 2025 revenue was $55.3 million, a 15% decrease from the prior year.
Gross margin compressed to 22% in Q1 2025, down from 33% in Q1 2024, primarily due to price changes.
Net income for the quarter was $2.8 million, resulting in diluted EPS of $0.06.
The company ended the quarter with $81 million in cash and no outstanding debt.
Forward Guidance
Hudson Technologies expects to achieve a mid-twenty percent gross margin as the selling season progresses and anticipates long-term growth opportunities from the HFC refrigerant phase down and increasing demand for reclaimed refrigerant.
Positive Outlook
- Expects to be on track for mid-twenty percent gross margin in the core selling season.
- Saw continued strength in refrigerant recovery activities.
- Strengthened capabilities from the USA Refrigerants acquisition.
- Believes the HFC phase down under the AIM Act provides substantial long-term growth opportunity.
- Several states implementing requirements for reclaimed refrigerant use in municipal buildings.
Challenges Ahead
- First quarter 2025 revenue reflected lower overall refrigerant market pricing.
- First quarter 2025 sequential market pricing declined slightly from Q4 2024.
- Gross margin compression in 2025 was predominately price driven.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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