Hudson Technologies (NASDAQ:HDSN – Get Free Report) announced its earnings results on Wednesday. The industrial products company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.06), FiscalAI reports. Hudson Technologies had a net margin of 5.66% and a return on equity of 6.98%. The firm had revenue of $78.35 million during the quarter, compared to analysts’ expectations of $74.20 million.
Here are the key takeaways from Hudson Technologies’ conference call:
- Profitability declined amid weaker pricing and higher costs: Q2 revenue rose 8% to $78.3 million on 12% volume growth, but a 6% drop in average selling prices, freight inflation, ERP costs and legal expenses reduced gross margin to 26% from 31% and net income to $4.9 million from $10.2 million.
- HFC refrigerant prices remain under pressure due to excess channel inventory, illegal imports and limited sustained hot weather. Management expects prices to stabilize but cannot predict when illegal-import issues will be resolved, and lowered its full-year 2026 gross-margin outlook to the low-to-mid 20% range.
- Hudson secured the five-year, $210 million DLA contract re-award, resolving a seven-month challenge and providing greater visibility into its government business.
- Growth investments are expanding Hudson’s longer-term opportunities: the small recovery truck pilot is revenue-positive, predictive servicing has won four contracts this year, and the company plans broader rollouts while pursuing extractive-distillation technology to reclaim more complex refrigerant blends.
- The Illinois facility, temporarily idled for about three weeks after tornado damage, is fully operational again; insurance is expected to cover restoration costs, with no inventory loss or detectable damage to separation columns.
Hudson Technologies Stock Down 9.0%
Shares of Hudson Technologies stock traded down $0.56 during trading on Thursday, reaching $5.66. The company’s stock had a trading volume of 1,055,763 shares, compared to its average volume of 405,640. The firm’s 50-day moving average is $5.87 and its two-hundred day moving average is $6.19. Hudson Technologies has a 52-week low of $4.64 and a 52-week high of $10.52. The company has a market cap of $238.12 million, a price-to-earnings ratio of 18.26 and a beta of 0.78.
Analyst Ratings Changes
Get Our Latest Analysis on HDSN
Insiders Place Their Bets
In related news, Director Alan Sheriff acquired 5,200 shares of the stock in a transaction on Wednesday, May 13th. The stock was purchased at an average price of $4.88 per share, for a total transaction of $25,376.00. Following the completion of the transaction, the director owned 9,265 shares of the company’s stock, valued at $45,213.20. This trade represents a 127.92% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Jeffrey R. Feeler bought 5,100 shares of Hudson Technologies stock in a transaction on Thursday, May 14th. The shares were purchased at an average price of $4.92 per share, for a total transaction of $25,092.00. Following the acquisition, the director directly owned 9,165 shares in the company, valued at approximately $45,091.80. This trade represents a 125.46% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 919,940 shares of company stock valued at $5,374,186 in the last ninety days. Company insiders own 1.90% of the company’s stock.
Institutional Inflows and Outflows
A number of large investors have recently bought and sold shares of HDSN. Quarry LP grew its stake in shares of Hudson Technologies by 51.9% during the 3rd quarter. Quarry LP now owns 5,281 shares of the industrial products company’s stock valued at $52,000 after acquiring an additional 1,805 shares during the period. Graham Capital Management L.P. grew its holdings in shares of Hudson Technologies by 9.7% during the fourth quarter. Graham Capital Management L.P. now owns 36,985 shares of the industrial products company’s stock valued at $253,000 after buying an additional 3,256 shares during the last quarter. BNP Paribas Financial Markets increased its holdings in shares of Hudson Technologies by 88.3% in the third quarter. BNP Paribas Financial Markets now owns 7,530 shares of the industrial products company’s stock valued at $75,000 after purchasing an additional 3,532 shares during the period. Campbell & CO Investment Adviser LLC raised its position in Hudson Technologies by 7.2% during the 4th quarter. Campbell & CO Investment Adviser LLC now owns 52,762 shares of the industrial products company’s stock worth $361,000 after buying an additional 3,544 shares during the last quarter. Finally, Franklin Resources Inc. boosted its holdings in Hudson Technologies by 3.9% in the third quarter. Franklin Resources Inc. now owns 105,061 shares of the industrial products company’s stock valued at $1,043,000 after purchasing an additional 3,912 shares during the last quarter. 71.34% of the stock is owned by hedge funds and other institutional investors.
Key Headlines Impacting Hudson Technologies
Here are the key news stories impacting Hudson Technologies this week:
- Positive Sentiment: Hudson was re-awarded a U.S. Defense Logistics Agency (DLA) refrigerant IDIQ contract valued at $210 million through August 4, 2031, with a potential five-year extension through July 2036. The award restores a significant source of potential revenue and validates Hudson’s competitive position after a prior bid protest and rescission. Hudson Technologies Re-Awarded Defense Logistics Agency Contract
- Positive Sentiment: Second-quarter revenue rose approximately 8% year over year to $78.35 million, exceeding analyst expectations of about $74 million to $76 million. The company also generated $6.8 million in operating cash flow, held $25.6 million in cash, and said operations at its tornado-impacted facility were fully restored. Hudson Technologies Reports Second Quarter 2026 Results
- Neutral Sentiment: Hudson announced an Icorium partnership and continues to benefit from volume growth in its refrigerant products and services, but the financial contribution and timing of these initiatives remain uncertain.
- Negative Sentiment: Adjusted expectations for 2026 gross margin to the low-to-mid-20% range as the DLA contract is re-awarded. The revised target suggests the contract may carry lower margins than some existing business, potentially limiting the earnings benefit from the large award. Hudson revises 2026 gross margin target
- Negative Sentiment: Second-quarter adjusted earnings of $0.12 per share missed consensus estimates of $0.17–$0.18 and declined from $0.23 a year earlier. Gross profit, operating profit, and net income also fell, indicating that revenue growth did not translate into stronger profitability. Hudson Technologies Misses Q2 Earnings Estimates
Hudson Technologies Company Profile
Hudson Technologies, Inc is a U.S.-based provider of refrigerant management and sustainability solutions, specializing in the recovery, reclamation and recycling of refrigerant gases. The company’s core business centers on collecting used refrigerants—such as CFCs, HCFCs and HFCs—from industrial, commercial and institutional customers, processing them in certified reclamation facilities and returning material that meets industry purity standards.
Headquartered in Purchase, New York, Hudson Technologies operates a network of reclamation centers across the continental United States.
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