- First quarter revenue reflects continued low refrigerant market price landscape
- Reports $81 million in cash and no debt at March 31, 2025
- Continues share repurchase program
WOODCLIFF LAKE, NJ – May 7, 2025 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the first quarter ended March 31, 2025.
Brian F. Coleman, President and Chief Executive Officer of Hudson Technologies commented, “First quarter 2025 revenue reflected a slight increase in refrigerant sales volume, which was more than offset by lower overall refrigerant market pricing as compared to last year’s first quarter. First quarter 2025 sequential market pricing declined slightly from the fourth quarter of 2024, contributing to gross margin of 22%. We expect to be on track for our mid-twenty percent expected gross margin as we move through the core portion of the nine-month selling season. Additionally, we saw continued strength in the refrigerant recovery activities that feed our reclamation business, bolstered by our strengthened capabilities from the strategic acquisition of USA Refrigerants last year. We are pleased with the start to 2025 and remain focused on successfully executing on the elements of our business that we can control – most importantly by ensuring that our customers have the refrigerants they need as the weather turns warmer and the cooling season gets fully underway.
“We believe the current phase down of HFC refrigerants under the AIM Act provides a substantial long-term opportunity for the continued growth of our reclamation business as the supply of virgin HFCs declines. In addition, several states are beginning to implement requirements for the use of reclaimed refrigerant in their municipal buildings, creating an additional demand opportunity for reclaimed refrigerant. We are committed to elevating the importance of responsible refrigerant management through our promotion of field recovery practices throughout the industry, and our efforts have expanded our recognition as a reclamation partner and improved our access to recovered refrigerant.
“Hudson’s unlevered balance sheet strengthened further during the quarter, with $81 million in cash at March 31, 2025. We remain focused on our capital allocation strategy which includes investing in organic growth, pursuing acquisition opportunities that will strengthen our capabilities or geographic reach, and to opportunistically repurchase our stock. To date in 2025 we have repurchased $4.5 million of common stock under our stock buyback plan,” Mr. Coleman concluded.
Three Months Results
For the quarter ended March 31, 2025, Hudson reported:
- Revenues of $55.3 million, a decrease of 15% compared to revenues of $65.3 million in the comparable 2024 period. The revenue decline is related to decreased prices for certain refrigerants, partially offset by slightly increased sales volume as compared to the first quarter of 2024.
- Gross margin of 22%, compared to 33% in the first quarter of 2024. The gross margin compression in 2025 was predominately price driven.
- Selling, general and administrative expenses increased slightly to $8.2 million compared to $7.9 million in the first quarter of 2024.
- Operating income of $3.1 million, compared to operating income of $12.8 million in the prior year period.
- Net income of $2.8 million or $0.06 per basic and diluted share in the first quarter of 2025, compared to net income of $9.6 million or $0.21 per basic and $0.20 per diluted share in the same period of 2024.
Conference Call Information
Hudson Technologies will host a conference call and webcast today, Wednesday, May 7, 2025 at 5:00 p.m. Eastern Time to discuss the Company’s first quarter 2025 results.
Please visit this link at least 5 minutes prior to the scheduled start time in order to register and receive dial-in and webcast details.
A replay of the teleconference will be available until June 6, 2025, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52307.
