Hudson Technologies reported QQ1 2024 revenues of $65.3 million, down 15% year over year from $77.2 million in QQ1 2023, as falling refrigerant prices and a normalization of DLA contract activity weighed on topline growth. Gross margin declined to 33% from 39% in the prior year, driven by a weaker pricing environment for refrigerants and a shift in product mix. Despite the margin compression, the company delivered operating income of $12.8 million and net income of $9.6 million ($0.21 basic, $0.20 diluted per share), underscoring solid profitability in a difficult pricing environment. Hudson emphasizes that the weaker 2024 pricing backdrop is temporary and tied to stockpile unwind and broader AIM Act implementation, with management projecting a path back toward long-term gross margins around 35% as reclaim-focused pricing dynamics take hold and as final EPA rules crystallize.
Management reaffirmed a positive longer-term thesis anchored in higher sales prices and profitability from AIM Act-driven demand for reclaimed refrigerants. For 2024, Hudson guided to full-year revenue of approximately $250 million to $265 million with gross margins below the long-term target, reflecting current pricing dynamics. The company maintains strong liquidity (no net debt) and a robust balance sheet, with cash and revolver availability totaling about $93 million and a cash position of roughly $10.6 million at quarter-end, enabling potential inventory optimization, selective acquisitions, or buyback activity subject to lender waivers. The nine-month selling season (January–September) remains a focal point for visibility into HFC phasedowns and the evolving supply/demand balance.