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Dec 31, 2023

Hudson Q4 2023 Earnings Report

Hudson reported a decrease in revenue due to decreased selling prices, and delivered a solid fourth quarter consistent with historical performance.

Key Takeaways

Hudson Technologies reported a revenue of $44.9 million for Q4 2023, a 5% decrease compared to Q4 2022. Net income for the quarter was $3.9 million, or $0.08 per diluted share. The company's full year revenue was $289.0 million with a net income of $52.2 million.

Q4 2023 revenues decreased by 5% compared to Q4 2022 due to decreased selling prices.

Gross margin in Q4 2023 was 31%, compared to 32% in Q4 2022.

Net income for Q4 2023 was $3.9 million, or $0.08 per diluted share.

The company is optimistic about the AIM Act and its potential benefits for the business.

Total Revenue
$44.9M
Previous year: $47.4M
-5.5%
EPS
$0.08
Previous year: $0.11
-27.3%
Gross Margin
31%
Previous year: 32%
-3.1%
Gross Profit
$14M
Previous year: $15.2M
-7.9%
Cash and Equivalents
$12.4M
Previous year: $5.3M
+135.1%
Free Cash Flow
$13.7M
Previous year: $855K
+1498.1%
Total Assets
$297M
Previous year: $272M
+8.9%

Hudson

Hudson

Forward Guidance

Hudson anticipates the ongoing stepdown in HFC production and consumption allowances and the proposed reclamation mandates as a result of the AIM Act will benefit their business. They believe the proposed Refrigerant Management rule will drive higher demand for reclaimed refrigerants and expect a final rule to be issued this summer.

Positive Outlook

  • Stepdown in virgin production and consumption now represents 40% of the baseline for 2024 through 2028.
  • Proposed Refrigerant Management rule will drive higher demand for reclaimed refrigerants.
  • Expect a final rule to be issued this summer.
  • Existing and proposed legislation at both the federal and various state levels promotes the use of reclaimed refrigerant.
  • Company is uniquely positioned to leverage expertise and industry-leading reclamation technology.