Hudson Technologies ( (HDSN) ) has released its Q4 earnings. Here is a breakdown of the information Hudson Technologies presented to its investors.
Hudson Technologies, Inc. is a prominent player in the Heating Ventilation Air Conditioning and Refrigeration industry, specializing in sustainable refrigerant products and services, including reclamation and management. The company recently reported its financial results for the fourth quarter and full year of 2024, highlighting a strong balance sheet with $70.1 million in cash and no debt, despite facing a challenging market environment.
The company’s 2024 financial performance was impacted by a significant decline in market pricing for certain HFC refrigerants, which dropped by up to 45% compared to the previous year. This price decline overshadowed slight gains in sales volume, resulting in a 23% decrease in fourth-quarter revenues to $34.6 million and an 18% decrease in full-year revenues to $237.1 million. Despite these challenges, Hudson Technologies increased its refrigerant reclamation volume by 18% and strategically acquired USA Refrigerants to enhance its recovery network.
Hudson Technologies reported a net loss of $2.6 million for the fourth quarter, compared to a net income of $3.9 million in the same period of 2023. For the full year, net income was $24.4 million, down from $52.2 million in 2023. The company maintained a gross margin of 28% for the year, compared to 39% in 2023, primarily due to price-driven margin compression.
Looking ahead, Hudson Technologies remains optimistic about the opportunities presented by the ongoing phase-down of HFC refrigerants. The company is focused on maximizing its recovery and reclamation capabilities to address the anticipated supply-demand gap for reclaimed HFCs. With a solid financial position and strategic initiatives in place, Hudson Technologies is well-positioned to strengthen its leadership in the refrigerant reclamation market.