Hudson Technologies reports Q4 EPS (6c), consensus (2c)

Reports Q4 revenue $34.6M, consensus $37.96M…Brian F. Coleman, President and Chief Executive Officer of Hudson Technologies (HDSN), commented, “Our fourth quarter 2024 results reflected the seasonally slower sales activity we have historically seen outside of our nine-month selling season. Full year 2024 results reflected a challenging selling season in which market pricing for certain HFC refrigerants declined by up to 45% from last year’s levels which more than offset the slight gains we achieved in sales volume. The decline in refrigerant pricing was driven by higher than anticipated inventory levels up stream in the marketplace built up in advance of the HFC phaseout. During our many decades in this industry, we have successfully weathered unfavorable pricing environments by staying focused on what we can control – ensuring that our customers have the right refrigerants where and when they need them and promoting recovery and reclamation activities as our industry transitions to lower GWP equipment and refrigerants. We navigated 2024 with that focus and remain committed to our operating strategy. In fact, our overall reclaim activity increased 18% in 2024. “As we move through 2025, we maintain our long-term view that the current phase down of HFC refrigerants creates a significant opportunity for our reclamation business. The installed base of HFC equipment will be operable for many years to come, and as the supply of virgin HFCs becomes limited, reclaimed HFCs will be needed to fill the anticipated supply/demand gap. With that in mind, we are intent on maximizing our recovery and reclamation capabilities, as evidenced by our strategic acquisition of USA Refrigerants in June 2024. Refrigerant recovery is integral to the reclamation process and the USA Refrigerants acquisition provides Hudson access to a previously untapped recovery network. This, coupled with our ongoing efforts to promote recovery in the field, has strengthened our reclaimed refrigerant supply chain. We are now better positioned to continue to grow our leadership position in the reclamation landscape. “Our strong unlevered balance sheet with $70.1 million in cash and no debt at December 31 provides us the financial flexibility to continue executing on our three-pillar capital allocation strategy: invest in organic growth; explore acquisition opportunities; and opportunistically repurchase stock. During the fourth quarter, we repurchased $5.5 million of common stock under the stock buyback plan that was originally established in the third quarter of 2024. During full year 2024, the Company repurchased $8.1 million of common stock,” Mr. Coleman concluded.