Hudson Technologies reported lower third-quarter revenue and profit as weaker refrigerant prices and reduced sales volume weighed on results. The refrigerant services company said it is maintaining its full-year gross-margin target, ended the quarter debt-free with $35.3 million in cash, and secured a $210 million Defense Logistics Agency contract re-award.
It also entered a development agreement with Icorium on technology intended to improve the separation of complex mixed refrigerants, while continuing work to expand its own operating capacity.
Key details
- Third-quarter revenue was $59.4 million, down from $74.0 million a year earlier. Sales volume declined 9% and selling prices fell 17%.
- Gross margin was 25%, compared with 32% in the third quarter of 2025. Hudson attributed the decline primarily to lower refrigerant prices following an unusually elevated pricing environment a year earlier. The 25% margin was roughly in line with the second quarter of 2026.
- Net income was $2.0 million, or 5 cents per diluted share, versus $12.4 million, or 27 cents per diluted share, in the year-earlier quarter.
- Selling, general and administrative expenses rose to $10.8 million from $8.9 million. The increase reflected ongoing work to optimize the company’s recently launched ERP system, along with added staff and consulting resources for longer-term initiatives.
- Hudson said muted customer demand and adequate refrigerant inventories dampened sales activity. The comparison was also against a prior-year quarter when refrigerant prices were elevated amid supply-chain constraints tied to the transition to HFO refrigerants.
- Despite the quarterly decline, the company said sales volume rose 9% over the nine-month selling season.
- Hudson reported $35.3 million in cash and no debt at quarter-end. It said it is maintaining its full-year gross-margin target but did not state the target figure in the results announcement.
- The company said it was re-awarded a Defense Logistics Agency contract valued at $210 million. No further contract timing or terms were provided in the announcement.
- Under a joint development agreement with Icorium, Hudson plans to advance next-generation separation technology designed to handle complex mixtures of refrigerants more efficiently and complement its existing distillation technology.
- Hudson also said it made progress on internal efforts to increase operating capacity and capabilities.
Plain-English implications
Hudson’s results show how lower refrigerant prices and softer demand can reduce revenue and margins, even as the company remains profitable. Its cash balance and lack of debt give it financial flexibility, while the contract award and technology-development work represent separate efforts to support its position in the refrigerant market.