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Dec 31, 2024
Hudson Q4 2024 Earnings Report
Hudson Technologies reported a decline in revenue and net loss for Q4 2024, impacted by lower refrigerant prices and reduced demand.
Key Takeaways
Hudson Technologies reported revenues of $34.6 million for Q4 2024, a 23% decline year-over-year. The company recorded a net loss of $2.6 million and an operating loss of $3.2 million due to lower refrigerant prices and weaker market demand. Gross margin declined to 17% compared to 31% in Q4 2023. Despite the downturn, the company maintained a strong balance sheet with $70.1 million in cash and no debt.
Revenue declined 23% year-over-year to $34.6 million.
Gross margin compressed to 17% from 31% in Q4 2023 due to lower refrigerant prices.
Reported a net loss of $2.6 million, compared to a net income of $3.9 million in Q4 2023.
Strong cash position of $70.1 million with no debt.
Hudson
Hudson
Forward Guidance
Hudson Technologies expects continued demand for reclaimed refrigerants due to the ongoing HFC phaseout, while actively managing costs and exploring strategic acquisitions.
Positive Outlook
- Strong cash position of $70.1 million with no debt.
- Refrigerant reclamation volume increased by 18% in 2024.
- Strategic acquisition of USA Refrigerants enhances recovery capabilities.
- Stock repurchase program continued with $5.5 million in Q4 2024.
- Anticipated supply constraints of virgin HFCs may benefit reclaimed refrigerant demand.
Challenges Ahead
- Revenue declined 23% year-over-year due to lower refrigerant prices.
- Gross margin fell to 17% from 31% in Q4 2023.
- Reported a net loss of $2.6 million for the quarter.
- Operating loss of $3.2 million compared to a profit in Q4 2023.
- Continued challenges from inventory buildup and market pricing pressures.