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1. Company Snapshot

1.a. Company Description

Hudson Technologies, Inc.a refrigerant services company, provides solutions to recurring problems within the refrigeration industry primarily in the United States.The company's products and services include refrigerant and industrial gas sales; refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination to remove moisture, oils, and other contaminants.


It also offers SmartEnergy OPS service, a web-based real time continuous monitoring service for facility's refrigeration systems and other energy systems applications; and Chiller Chemistry and Chill Smart services.In addition, the company participates in the generation of carbon offset projects.It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers.


Hudson Technologies, Inc.was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.

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1.b. Last Insights on HDSN

Hudson Technologies' recent struggles can be attributed to its Q4 earnings miss, which saw a loss of $0.06 per share versus the expected loss of $0.02. The company's revenue decreased 23% year-over-year, primarily due to lower selling prices for certain refrigerants. This decline in top-line growth is a significant concern, as it may indicate a shift in market dynamics or increased competition. The company's failure to meet revenue estimates has likely weighed on investor sentiment, contributing to the stock's recent weakness.

1.c. Company Highlights

2. Hudson Technologies' Q3 2025 Earnings: A Strong Beat

Hudson Technologies reported a robust third quarter 2025, with revenue growing 20% to $74 million, driven by increased sales volume and higher average sales prices. The company's gross margin expanded to 32%, a 630 basis point increase, resulting in gross profit improving to $23.7 million from $15.9 million in the prior year. Net income rose 59% to $12.4 million, or $0.27 per share, beating analyst estimates of $0.21 per share. The strong performance was driven by 18% volume growth and a couple of points higher pricing, with USA refrigerants contributing similarly to previous quarters.

Publication Date: Dec -02

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue surged 20% to $74 million, driven by 18% volume growth and higher pricing.
  • Gross Margin Expansion:: Gross margin expanded 630 bps to 32% ($23.7 million gross profit), up from $15.9 million in 2024.
  • Net Income Surge:: Net income rose 59% to $12.4 million ($0.27/share), reflecting improved margins and sales.
  • Major Contract Win:: Secured a $210 million, 5-year U.S. Defense Logistics Agency contract as prime contractor.
  • Strong Financial Position:: Holds $90 million in cash with no debt, targeting inorganic growth and strategic acquisitions.

Contract Wins and Growth Strategy

The company recently won a significant $210 million, 5-year contract with the U.S. Defense Logistics Agency as prime contractor, underscoring its capabilities. Hudson's refrigerant reclamation activity grew at about the same rate as the industry's 19% increase in 2024. The company is focused on advancing its growth strategy, both organically and inorganically, and is in the final stages of searching for a new CEO with alternative skill sets, including experience with acquisitions and organic growth.

Valuation and Outlook

With a current P/E Ratio of 13.94 and an EV/EBITDA of 7.51, Hudson Technologies appears to be reasonably valued. Management expects a slightly above mid-20% gross margin for full-year 2025 and sees potential for long-term growth driven by the phase-down of HFC refrigerants. The company's strong cash position, with $90 million in cash and no debt, provides flexibility for strategic initiatives and acquisitions. Analysts estimate next year's revenue growth at 3.0%, but Hudson's focus on inorganic growth and potential acquisitions could drive higher growth.

Operational Highlights

The sequential build in Q3 inventory was a deliberate decision to adequately serve the market next year, resulting in a normalized working capital structure and $25 million of operating cash flow. A2L systems will become a larger part of the business, growing in percentage and importance, as the company continues to service its core customers with HFCs. The company is well-set up for 2026, with a dominant HFC installation base that will phase out, while A2Ls will grow.

Future Plans

The company is interested in acquiring a service business to reduce seasonal revenue impact, focusing on areas aligned with end-user customers, and adjacent spaces in HVAC cooling systems. The $90 million in cash will be used for strategic initiatives, acquisitions, and potentially other opportunities, providing a strong foundation for future growth.

3. NewsRoom

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Hudson Pacific Sells Element LA Office Campus

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Source: businesswire.com

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Hudson Pacific Properties Updates Fourth Quarter FFO Outlook and Full-Year Assumptions

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Source: businesswire.com

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Hudson Pacific Appoints Jon Bortz to Board of Directors

Dec -03

Source: businesswire.com

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Blue Gold Closes $15 Million Facility to Launch Gold Trading Activity

Dec -03

Source: globenewswire.com

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Hudson Technologies Board of Directors Approves Increase in Share Repurchase Authorization

Dec -01

Source: globenewswire.com

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3 Value Stocks That Look Undervalued After the Recent Market Pullback

Dec -01

Source: fool.com

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Hudson Pacific Properties Announces Reverse Stock Split

Nov -17

Source: businesswire.com

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Aviva PLC Has $503,000 Stock Position in Hudson Technologies, Inc. $HDSN

Nov -14

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.05%)

6. Segments

Commercial Air Conditioning, Industrial Processing and Refrigeration Systems

Expected Growth: 5%

Hudson Technologies' 5% growth in Commercial Air Conditioning, Industrial Processing, and Refrigeration Systems is driven by increasing demand for energy-efficient solutions, rising adoption of natural refrigerants, and growing need for process cooling in industries such as food processing, pharmaceuticals, and data centers.

RefrigerantSide Services

Expected Growth: 7%

Hudson Technologies' RefrigerantSide Services growth is driven by increasing demand for refrigerant management and reclamation, stringent EPA regulations, and growing adoption of natural refrigerants. Additionally, the company's expertise in refrigerant recovery and reuse, as well as its comprehensive service offerings, contribute to its 7% growth rate.

7. Detailed Products

Refrigerant Reclaim Services

Hudson Technologies provides refrigerant reclaim services to recover and recycle used refrigerants, ensuring environmental sustainability and compliance with regulations.

Refrigerant Sales

Hudson Technologies offers a wide range of refrigerants, including new and reclaimed products, to meet the needs of HVACR professionals and OEMs.

Equipment Sales

Hudson Technologies sells a variety of equipment, including refrigerant recovery machines, leak detectors, and other tools, to support the HVACR industry.

Training and Certification

Hudson Technologies provides training and certification programs for HVACR professionals, focusing on refrigerant handling, safety, and environmental regulations.

Refrigerant Management Services

Hudson Technologies offers comprehensive refrigerant management services, including tracking, reporting, and compliance support, to help customers manage their refrigerant inventories.

8. Hudson Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Hudson Technologies, Inc. faces moderate threat from substitutes due to the availability of alternative refrigerant products and services.

Bargaining Power Of Customers

Hudson Technologies, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Hudson Technologies, Inc. relies on a few key suppliers for refrigerant products, giving them moderate bargaining power.

Threat Of New Entrants

The refrigerant industry has high barriers to entry, making it difficult for new entrants to compete with Hudson Technologies, Inc.

Intensity Of Rivalry

The refrigerant industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.84%
Debt Cost 8.96%
Equity Weight 97.16%
Equity Cost 8.96%
WACC 8.96%
Leverage 2.92%

11. Quality Control: Hudson Technologies, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hudson Technologies

A-Score: 5.3/10

Value: 5.3

Growth: 7.6

Quality: 6.5

Yield: 0.0

Momentum: 8.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Ecovys

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.6

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Core Molding Technologies

A-Score: 5.2/10

Value: 7.2

Growth: 5.9

Quality: 5.3

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Kronos Worldwide

A-Score: 5.0/10

Value: 9.1

Growth: 2.7

Quality: 5.0

Yield: 9.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
NTIC

A-Score: 4.3/10

Value: 6.8

Growth: 5.8

Quality: 5.2

Yield: 3.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Koppers

A-Score: 3.8/10

Value: 6.7

Growth: 4.8

Quality: 2.7

Yield: 1.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.34$

Current Price

7.34$

Potential

-0.00%

Expected Cash-Flows