Hudson Technologies Revenue Falls to $59.4 Million as Refrigerant Prices Decline
Key Facts
Hudson Technologies reported on October 28 that third-quarter 2026 revenue was $59.4 million, down from $74.0 million in the same period last year, reflecting weaker demand and lower refrigerant prices. Revenue was below the expected $74.98 million, according to estimates cited by StreetInsider, while the company reported diluted earnings per share of $0.05, versus analysts’ estimate of $0.21. Net income fell to $2.0 million from $12.4 million a year earlier, while diluted earnings per share were $0.05 compared with $0.27. The company reported results after the market closed, so the October 27 close of $5.26 was not tied to a report released the following day. In regular trading on October 28, the stock closed at $5.23, down 0.57% from the previous close, then fell 10.52% in after-hours trading to $4.68 following the results.
Quarterly revenue declined as sales volume fell 9% and selling prices dropped 17% compared with the third quarter of 2025, the company said. Hudson attributed weaker activity to soft customer demand and adequate refrigerant inventories, conditions that limited sales activity compared with the prior period. The year-over-year comparison also faced a high base, as the third quarter of 2025 saw broad increases in refrigerant prices amid supply constraints. The company said, "Soft customer demand and adequate refrigerant inventories reduced sales activity compared with the same period last year." This explanation places the revenue pressure within changing market conditions, with lower volumes coinciding with lower prices rather than resulting from a single factor.
Lower market prices weighed on gross profit margin, which was 25% in the third quarter, compared with 32% in the same period a year earlier. Hudson said lower refrigerant prices were the primary reason for the margin contraction, as selling prices declined 17% during the quarter. Selling, general and administrative expenses also rose to $10.8 million from $8.9 million a year earlier. The company said the increase included ongoing investments to improve its enterprise resource planning system, as well as hiring and consulting. The lower margin and higher expenses coincided in a quarter when net income fell to $2.0 million, compared with $12.4 million in the third quarter of 2025.
The first nine months presented a less severe revenue picture than the quarter alone, with sales of $197.9 million compared with $202.2 million in the same period of 2025. Sales volume rose 9% over that period, largely offsetting a 9% decline in selling prices, according to the company’s statement. But nine-month net income fell to $7.3 million from $25.3 million a year earlier. Basic and diluted earnings per share were $0.17 for the period, compared with basic earnings per share of $0.58 and diluted earnings per share of $0.56 in the first nine months of 2025. The figures highlight a divergence between volume growth over the extended period and weaker prices and profitability, while the third quarter was affected by declines in both volume and prices.
Hudson maintained its 2026 gross margin outlook in the low-to-mid-twenties range, despite posting a 25% margin in the third quarter. On contracts, the company announced the re-award of a $210 million contract for the U.S. Defense Logistics Agency. The chief executive also said Hudson entered a joint development agreement with Icorium during the quarter to work on advanced technology for separating complex refrigerant blends. He said the company is focused on refrigerant sales, reclamation and recycling as it moves through the fourth quarter and prepares for 2027. One aim of that focus, he added, is to reduce the company’s exposure to price volatility, which was reflected in the quarter’s results as selling prices and gross margin declined.
The company had scheduled a call to discuss its third-quarter results for October 28 at 5 p.m. Eastern Time, with a replay available through November 27. In presenting the results, the chief executive put recent performance in the context of the company’s focus on its core refrigerant business and preparations for 2027. He said, "As we move through the fourth quarter and prepare for 2027, we remain focused on our core activities in refrigerant sales, reclamation and recycling." These priorities combine sales activity, which was affected by softer demand and prices, with reclamation and recycling, which form part of management’s direction. The re-awarded contract and joint development agreement were two developments announced alongside the results, as the company maintained its annual margin outlook.