Company Overview - Century Aluminum (CENX) is part of the Industrial Products group, which consists of 189 companies and ranks 4 in the Zacks Sector Rank [2] - The Zacks Rank for Century Aluminum is 2 (Buy), indicating a favorable outlook based on earnings estimates and revisions [3] Performance Analysis - Year-to-date, Century Aluminum has increased by approximately 24.3%, outperforming the average gain of 5.6% in the Industrial Products group [4] - In comparison, another stock in the sector, Hudson Technologies (HDSN), has shown a significant return of 75.3% year-to-date [4] - The consensus estimate for Century Aluminum's full-year earnings has risen by 12.4% in the past quarter, reflecting improved analyst sentiment [3] Industry Context - Century Aluminum operates within the Metal Products - Procurement and Fabrication industry, which includes 8 companies and currently ranks 38 in the Zacks Industry Rank [5] - Stocks in this specific industry have gained about 7.8% year-to-date, indicating that Century Aluminum is performing better than its peers in this category [5] - Hudson Technologies belongs to the Industrial Services industry, which has seen a 3.9% increase this year, and is also ranked 38 [6]

Company Overview - Hudson Technologies (NASDAQ: HDSN) has a market capitalization below $500 million, distinguishing it from a portfolio primarily composed of high-quality blue-chip stocks that typically dominate concentrated industries [1]. Investment Philosophy - The investment strategy focuses on undervalued stocks and high-quality dividend growers that provide reliable cash flow for reinvestment, emphasizing sustained profitability through strong margins, stable and expanding free cash flow, and high returns on invested capital as more reliable return drivers than valuation alone [1]. Personal Background of the Analyst - The analyst possesses three degrees in Economics, Classical Philology, and Philosophy & Theology, which enhance the ability to analyze companies through both numerical and humanistic perspectives [1]. Long-term Investment Goals - The investment approach is driven by a desire to ensure financial freedom for future generations, aiming for a balance where assets provide the freedom to work in fulfilling ways rather than merely seeking to avoid work [1].

PART I – FINANCIAL INFORMATION [Item 1 - Financial Statements (unaudited)](index=4&type=section&id=Item%201%20-%20Financial%20Statements%20(unaudited)) Presents Hudson Technologies' unaudited consolidated financial statements, covering balance sheets, income, equity, cash flows, and accounting notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (Amounts in thousands) | Metric | June 30, 2025 (unaudited) | December 31, 2024 | | :-------------------------------- | :------------------------ | :------------------ | | Cash and cash equivalents | $84,293 | $70,134 | | Trade accounts receivable – net | $35,883 | $13,629 | | Inventories | $77,683 | $96,247 | | Total current assets | $212,587 | $195,512 | | Total Assets | $317,853 | $302,652 | | Total current liabilities | $54,804 | $47,809 | | Total Liabilities | $63,074 | $56,802 | | Total Stockholders' Equity | $254,779 | $245,850 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Statements of Income Highlights (Amounts in thousands, except per share amounts) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $72,849 | $75,282 | $128,192 | $140,532 | | Gross profit | $22,811 | $22,571 | $34,879 | $43,992 | | Operating income | $12,724 | $12,798 | $15,799 | $25,574 | | Net income | $10,168 | $9,585 | $12,926 | $19,147 | | Net income per common share – Basic | $0.23 | $0.21 | $0.29 | $0.42 | | Net income per common share – Diluted | $0.23 | $0.20 | $0.28 | $0.40 | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Changes in Stockholders' Equity (Six Months Ended June 30, 2025 vs 2024, Amounts in thousands) | Item | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Balance at January 1 | $245,850 | $228,773 | | Repurchase of common shares | $(4,535) | — | | Share-based compensation | $538 | $751 | | Net income | $12,926 | $19,147 | | Balance at June 30 | $254,779 | $248,668 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, Amounts in thousands) | Activity | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net income | $12,926 | $19,147 | | Cash provided by operating activities | $20,569 | $40,835 | | Cash used in investing activities | $(1,875) | $(22,755) | | Cash used in financing activities | $(4,535) | $(2) | | Increase in cash and cash equivalents | $14,159 | $18,078 | | Cash and cash equivalents at end of period | $84,293 | $30,524 | [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [Note 1 - Summary of Significant Accounting Policies](index=8&type=section&id=Note%201%20-%20Summary%20of%20Significant%20Accounting%20Policies) - Hudson Technologies provides refrigerant services, including sales, recovery, reclamation, and RefrigerantSide® Services, primarily for commercial air conditioning, industrial processing, and refrigeration systems[19](index=19&type=chunk)[20](index=20&type=chunk) - The USA Refrigerants Acquisition (June 6, 2024) for **$20.7 million cash** (plus up to **$2.0 million contingent payment**) aims to broaden customer networks, increase access to recovered refrigerants, and enhance geographic footprint[24](index=24&type=chunk)[25](index=25&type=chunk) - The AIM Act mandates a phase-down of HFC production and consumption, with a cumulative **40% reduction for 2024-2029**. Refrigerant reclamation is unrestricted and crucial for maintaining HFC supply[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - The EPA's Final Refrigerant Management Rule (Sept 20, 2024) requires better management and reuse of existing HFCs, including leak repair, automatic leak detection, and mandatory use of reclaimed HFCs for certain applications[30](index=30&type=chunk) Revenue from United States Defense Logistics Agency (DLA) (Amounts in millions) | Period | Revenue | | :-------------------------------- | :------ | | Six months ended June 30, 2025 | $17.7 | | Six months ended June 30, 2024 | $18.8 | *DLA accounted for greater than 10% of the Company's revenue and outstanding accounts receivable* [Note 2 - Fair Value](index=19&type=section&id=Note%202%20-%20Fair%20Value) - The company categorizes fair value measurements into a three-level hierarchy: Level 1 (active markets, identical assets), Level 2 (less active markets, similar assets), and Level 3 (unobservable inputs)[72](index=72&type=chunk)[73](index=73&type=chunk) - Carrying values of cash, trade accounts receivable, and accounts payable approximate fair value due to their relatively short maturity[32](index=32&type=chunk) [Note 3 - Inventories](index=21&type=section&id=Note%203%20-%20Inventories) Inventories (Amounts in thousands) | Item | June 30, 2025 (unaudited) | December 31, 2024 | | :-------------------------------- | :------------------------ | :------------------ | | Refrigerants and cylinders | $85,950 | $104,479 | | Less: net realizable value adjustments | $(8,267) | $(8,232) | | Total | $77,683 | $96,247 | [Note 4 - Property, plant and equipment](index=21&type=section&id=Note%204%20-%20Property%2C%20plant%20and%20equipment) Property, Plant and Equipment (Amounts in thousands) | Item | June 30, 2025 (unaudited) | December 31, 2024 | | :-------------------------------- | :------------------------ | :------------------ | | Subtotal (Gross) | $66,120 | $63,998 | | Less: Accumulated depreciation | $(43,901) | $(42,444) | | Total (Net) | $22,219 | $21,554 | *Depreciation expense for the six-month periods ended June 30, 2025 and 2024 was $1.5 million and $1.6 million, respectively* [Note 5 - Leases](index=21&type=section&id=Note%205%20-%20Leases) - Operating lease expense was **$0.9 million** for both the six-month periods ended June 30, 2025 and 2024[81](index=81&type=chunk) Operating Lease Liabilities and Terms (Amounts in thousands) | Metric | June 30, 2025 (unaudited) | December 31, 2024 | | :-------------------------------- | :------------------------ | :------------------ | | Present value of operating lease liabilities | $5,959 | $6,878 | | Weighted-average remaining term for operating leases | 2.51 years | 2.87 years | | Weighted-average discount rate for operating leases | 8.53% | 8.45% | [Note 6 - Goodwill and intangible assets](index=22&type=section&id=Note%206%20-%20Goodwill%20and%20intangible%20assets) - Goodwill remained at **$62.3 million** as of June 30, 2025, and December 31, 2024, with no impairment losses recognized for the six-month period ended June 30, 2025, or the year ended December 31, 2024[84](index=84&type=chunk)[85](index=85&type=chunk) Identifiable Intangible Assets (Net, Amounts in thousands) | Item | June 30, 2025 (unaudited) | December 31, 2024 | | :-------------------------------- | :------------------------ | :------------------ | | Covenant not to compete | $48 | $54 | | Customer relationships | $10,969 | $12,434 | | Above market leases | $224 | $246 | | Trade name | $1,214 | $1,366 | | Total identifiable intangible assets | $12,455 | $14,100 | *Amortization expense for the six-month periods ended June 30, 2025 and 2024 was $1.6 million and $1.5 million, respectively* [Note 7 - Share-based compensation](index=24&type=section&id=Note%207%20-%20Share-based%20compensation) - Share-based compensation expense for the six-month periods ended June 30, 2025 and 2024 was **$0.5 million** and **$0.7 million**, respectively[86](index=86&type=chunk) - As of June 30, 2025, **6,706,835 shares** of common stock were available under the Plans for future stock option grants or other stock-based awards[87](index=87&type=chunk) Stock Option Activity (Six Months Ended June 30) | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Options granted | 459,630 | 133,371 | | Options outstanding at June 30 | 2,953,350 | 45,516,146 (Note: This is total shares, not options) | | Weighted Average Exercise Price (Outstanding at June 30) | $4.16 | $3.63 (Note: This is for Dec 31, 2024) | | Intrinsic value of options outstanding (June 30) | $13.2 million | $8.6 million (Note: This is for Dec 31, 2024) | | Intrinsic value of options exercised (Six months) | $1.3 million | $0.2 million | [Note 8 - Short-term and Long-term debt](index=28&type=section&id=Note%208%20-%20Short-term%20and%20Long-term%20debt) - On June 23, 2025, the Amended Wells Fargo Revolving Credit Facility's maximum revolving loans were reduced from **$75 million to $40 million**, and the letter of credit sublimit was reduced from **$2 million to $1.5 million**[109](index=109&type=chunk) - As of June 30, 2025, the company had approximately **$40 million** in borrowing availability under the Amended Wells Fargo Facility with no outstanding balance, and was in compliance with all covenants[111](index=111&type=chunk)[112](index=112&type=chunk) - The Amended Wells Fargo Facility matures on March 2, 2027[110](index=110&type=chunk) [Note 9 – Accrued expenses and other current liabilities](index=30&type=section&id=Note%209%20%E2%80%93%20Accrued%20expenses%20and%20other%20current%20liabilities) Accrued Expenses and Other Current Liabilities (Amounts in thousands) | Item | June 30, 2025 (unaudited) | December 31, 2024 | | :-------------------------------- | :------------------------ | :------------------ | | Accrued expenses | $13,741 | $12,320 | | Cylinder deposits | $21,951 | $19,426 | | Lease obligations | $2,020 | $1,961 | | Other current liabilities | $228 | $106 | [Note 10 – Acquisition](index=32&type=section&id=Note%2010%20%E2%80%93%20Acquisition) - On June 6, 2024, the company acquired USA Refrigerants for **$20.7 million in cash** and a contingent payment of up to **$2.0 million**, recognizing **$14.5 million in goodwill** primarily from expected revenue growth[115](index=115&type=chunk)[117](index=117&type=chunk) USA Refrigerants Acquisition Pro Forma Financials (Six Months Ended June 30, Amounts in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Revenues | $128,192 | $149,465 | | Net Income | $12,926 | $21,491 | [Note 11 – Share repurchases](index=34&type=section&id=Note%2011%20%E2%80%93%20Share%20repurchases) - The Board of Directors authorized a share repurchase program of up to **$20 million** (**$10 million** each for 2024 and 2025), with an aggregate cap of **$25 million**[119](index=119&type=chunk)[182](index=182&type=chunk) Share Repurchases (Six Months Ended June 30, 2025) | Period | Shares Repurchased | Total Cost | | :-------------------------------- | :----------------- | :--------- | | Three months ended June 30, 2025 | 495,065 | $2.7 million | | Six months ended June 30, 2025 | 803,653 | $4.5 million | [Note 12 – Segment information](index=34&type=section&id=Note%2012%20%E2%80%93%20Segment%20information) - The company operates as a single reportable segment, with consolidated net income used by management to evaluate performance and allocate resources[120](index=120&type=chunk)[121](index=121&type=chunk) [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, liquidity, capital resources, risks, and accounting estimates, focusing on refrigerant sales and cash flow [Critical Accounting Estimates](index=35&type=section&id=Critical%20Accounting%20Estimates) - Significant judgments and estimates are involved in preparing financial statements, particularly concerning inventory reserves, goodwill, and intangible assets[125](index=125&type=chunk) - Inventory write-downs to net realizable value are influenced by market prices for refrigerant gases, which are affected by factors like weather, seasonality, supply, government regulation, and economic conditions[126](index=126&type=chunk) [Overview](index=35&type=section&id=Overview) - Hudson Technologies is a leading provider of sustainable refrigerant products and services to the HVACR industry, specializing in refrigerant reclamation and sales[127](index=127&type=chunk)[128](index=128&type=chunk) - Sales of refrigerants constitute the significant majority of the company's revenues[129](index=129&type=chunk) - The company holds a five-year contract with the United States Defense Logistics Agency (DLA) for refrigerant and compressed gas management and supply, expiring in July 2026[130](index=130&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Three Months Ended June 30, 2025 vs 2024 | Metric | 2025 (in millions) | 2024 (in millions) | Change (%) | Primary Driver | | :-------------------------------- | :----------------- | :----------------- | :--------- | :------------- | | Revenues | $72.8 | $75.3 | -3% | Lower volume, partially offset by higher average sales price | | Gross Profit | $22.8 | $22.6 | +1% | Increase in average sales price | | Gross Margin | 31% | 30% | +1 ppt | Increase in average sales price | | SG&A Expenses | $9.3 | $9.0 | +3% | Increase in staffing costs | | Net Interest Income (Expense) | $0.7 | $(0.2) | N/A | Unlevered balance sheet, higher cash | | Net Income | $10.2 | $9.6 | +6% | Increased average selling prices, partially offset by lower sales volume | Six Months Ended June 30, 2025 vs 2024 | Metric | 2025 (in millions) | 2024 (in millions) | Change (%) | Primary Driver | | :-------------------------------- | :----------------- | :----------------- | :--------- | :------------- | | Revenues | $128.2 | $140.5 | -9% | Lower selling prices and slightly lower volume | | Gross Profit | $34.9 | $44.0 | -21% | Lower average selling prices | | Gross Margin | 27% | 31% | -4 ppt | Lower average selling prices | | SG&A Expenses | $17.4 | $17.0 | +2% | Increase in staffing | | Net Interest Income (Expense) | $1.2 | $(0.4) | N/A | Unlevered balance sheet, higher cash | | Net Income | $12.9 | $19.1 | -32% | Lower selling prices, slightly lower sales volume, higher SG&A | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity and Capital Resources Highlights (Amounts in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Working Capital | $157.8 | $147.7 | | Inventories | $77.7 | $96.2 | | Trade Receivables, net | $35.9 | $13.6 | | Cash and Cash Equivalents | $84.3 | $70.1 | Cash Flow Activities (Six Months Ended June 30, Amounts in millions) | Activity | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net cash provided by operating activities | $20.6 | $40.8 | | Net cash used in investing activities | $(1.9) | $(22.8) | | Net cash used in financing activities | $(4.5) | $(0.0) | - The Amended Wells Fargo Revolving Credit Facility's maximum revolving loans were reduced from **$75 million to $40 million** on June 23, 2025. As of June 30, 2025, the company had approximately **$40 million** in borrowing availability with no outstanding balance and was in compliance with all covenants[109](index=109&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[163](index=163&type=chunk) [Reliance on Suppliers and Customers](index=43&type=section&id=Reliance%20on%20Suppliers%20and%20Customers) - The company's operating results are sensitive to changes in regulations, its ability to source refrigerants, and fluctuations in demand and price for refrigerants[166](index=166&type=chunk) - The United States Defense Logistics Agency (DLA) accounted for over **10%** of the company's revenue and outstanding accounts receivable for the six-month periods ended June 30, 2025 and 2024[167](index=167&type=chunk) - The loss of a principal customer or a decline in purchases could have a material adverse effect on the company's operating results and financial position[168](index=168&type=chunk) [Seasonality and Weather Conditions and Fluctuations in Operating Results](index=45&type=section&id=Seasonality%20and%20Weather%20Conditions%20and%20Fluctuations%20in%20Operating%20Results) - The company's business is seasonal, with peak refrigerant sales occurring in the first nine months of each year. Unseasonably cool weather can adversely affect demand[169](index=169&type=chunk) - Operating results can vary due to weather, customer requirements, refrigerant availability and price, regulatory changes, and timing of equipment retrofits[169](index=169&type=chunk) [Recent Accounting Pronouncements](index=45&type=section&id=Recent%20Accounting%20Pronouncements) - The company is evaluating the impact of ASU 2023-09 (Income Taxes), effective for annual periods beginning after December 15, 2024, which requires additional disclosures for effective tax rate reconciliation and disaggregation of taxes paid[69](index=69&type=chunk)[170](index=170&type=chunk) - The company is also evaluating ASU 2024-03 (Expense Disaggregation), effective for annual periods beginning after December 15, 2026, which requires additional disclosure about specific expense categories[70](index=70&type=chunk)[170](index=170&type=chunk) [Item 3 - Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Outlines market risk exposure from interest rate fluctuations on the credit facility and changes in refrigerant demand, price, and availability - The company is exposed to interest rate risk from fluctuations on its Amended Wells Fargo Facility, which had a **$0.0 million** outstanding balance as of June 30, 2025[171](index=171&type=chunk) - Market risk also arises from fluctuations in the demand, price, and availability of refrigerants. Inability to source sufficient quantities or a decline in demand/price could negatively impact revenue or lead to inventory write-downs[172](index=172&type=chunk) [Item 4 - Controls and Procedures](index=45&type=section&id=Item%204%20-%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures as of June 30, 2025, with no material changes to internal control - The company's disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025, providing reasonable assurance of timely and accurate information reporting[173](index=173&type=chunk) - There were no material changes to the company's internal control over financial reporting during the quarter ended June 30, 2025[175](index=175&type=chunk) PART II – OTHER INFORMATION [Item 1A - Risk Factors](index=47&type=section&id=Item%201A-%20Risk%20Factors) Refers to risk factors from the 2024 Form 10-K, confirming no material changes in the quarter - No material changes to the risk factors previously disclosed in the company's Form 10-K for the year ended December 31, 2024, occurred during the quarter ended June 30, 2025[177](index=177&type=chunk) [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details share repurchase activities under the authorized program, including shares bought back and remaining value for future repurchases Issuer Purchases of Equity Securities (April 1 - June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program (millions of dollars) | | :-------------------------------- | :----------------------------- | :--------------------------- | :------------------------------------------------------------------------------------------------- | | April 1-30, 2025 | 495,065 | $5.46 | $8.2 | | May 1-31, 2025 | — | — | $5.5 | | June 1-30, 2025 | — | — | $5.5 | | Total | 495,065 | $5.46 | $5.5 | - The company's Board of Directors approved an increase to the share repurchase program, allowing for the purchase of up to **$20 million** in shares (**$10 million** each for 2024 and 2025), with an aggregate cap of **$25 million**[182](index=182&type=chunk) [Item 5 - Other Information](index=47&type=section&id=Item%205%20-%20Other%20Information) Reports on an agreement with CFO Brian J. Bertaux, detailing non-compete clauses and severance terms for employment separations - An agreement with CFO Brian J. Bertaux (July 31, 2025) includes a **12-month non-compete clause** in the United States following termination for any reason[181](index=181&type=chunk) - The agreement provides for severance payments, including continuation of annual base salary and benefits for **twelve months**, and a lump sum bonus payment, in cases of involuntary separation without cause, disability, or voluntary separation for good reason[181](index=181&type=chunk) - Upon such separation events, all stock options, stock appreciation rights, and similar rights held by Mr. Bertaux will become fully vested and remain exercisable for a specified period[181](index=181&type=chunk)[183](index=183&type=chunk) [Item 6 - Exhibits](index=49&type=section&id=Item%206%20-%20Exhibits) Lists all exhibits filed as part of the Form 10-Q, including CEO/CFO certifications and the agreement with Brian J. Bertaux - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer (31.1, 31.2, 32.1, 32.2) and the agreement with Brian J. Bertaux (10.1)[185](index=185&type=chunk) [Signatures](index=50&type=section&id=Signatures) Contains the required signatures for the Form 10-Q, confirming its official submission to the SEC - The report was signed by Brian F. Coleman, Chairman of the Board, President and Chief Executive Officer, and Brian J. Bertaux, Chief Financial Officer, on August 1, 2025[189](index=189&type=chunk)

Core Viewpoint - Hudson Technologies (HDSN) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that impact stock prices [4]. Business Improvement Indicators - The rising earnings estimates for Hudson Technologies indicate an improvement in the company's underlying business, which is expected to drive the stock price higher [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Hudson Technologies is projected to earn $0.47 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 45.3% over the past three months [8]. Zacks Rank System Performance - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, indicating the potential for market-beating returns [7][9]. Positioning in the Market - The upgrade to Zacks Rank 1 places Hudson Technologies in the top 5% of Zacks-covered stocks, suggesting a favorable outlook for near-term stock price movement [10].

Core Insights - Hudson Technologies (HDSN) and SiteOne Landscape (SITE) are being compared for investment value opportunities [1] - HDSN has a stronger Zacks Rank of 1 (Strong Buy) compared to SITE's 3 (Hold), indicating better earnings estimate revision trends for HDSN [3] Valuation Metrics - HDSN has a forward P/E ratio of 20.19, while SITE has a significantly higher forward P/E of 42.85 [5] - HDSN's PEG ratio is 0.67, indicating better value relative to its expected earnings growth, whereas SITE's PEG ratio is 2.49 [5] - HDSN's P/B ratio stands at 1.67, compared to SITE's P/B of 3.77, suggesting HDSN is more undervalued based on market value versus book value [6] Investment Recommendation - Based on the valuation metrics, HDSN holds a Value grade of A, while SITE has a Value grade of C, making HDSN the more attractive option for value investors [6]

Group 1 - The article emphasizes the importance of earnings estimates and revisions in identifying winning stocks, while also considering various investment strategies such as value, growth, and momentum [1][2] - Value investing is highlighted as a popular and successful strategy across different market environments, focusing on identifying undervalued companies through fundamental analysis [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly for value investors looking for high grades in the "Value" category [3] Group 2 - Hudson Technologies (HDSN) is identified as a stock to watch, currently holding a Zacks Rank of 1 (Strong Buy) and an A grade for Value [4] - HDSN's current P/E ratio is 18.42, significantly lower than the industry average P/E of 29.51, indicating potential undervaluation [4] - The stock's Forward P/E has fluctuated between 7.72 and 20.74 over the past 52 weeks, with a median of 13.08, suggesting a favorable earnings outlook [4][5]

Company Performance - Hudson Technologies reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing an increase from $0.20 per share a year ago, resulting in an earnings surprise of +53.33% [1] - The company posted revenues of $72.85 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.38%, although this represents a decline from year-ago revenues of $75.28 million [2] - Over the last four quarters, Hudson Technologies has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Hudson Tech shares have increased approximately 53.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $67.71 million, and for the current fiscal year, it is $0.37 on revenues of $229.35 million [7] Industry Outlook - The Industrial Services industry, to which Hudson Technologies belongs, is currently ranked in the top 6% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Hudson Technologies' stock performance [5][6]

Financial Data and Key Metrics Changes - Hudson Technologies reported revenues of $72.8 million for Q2 2025, a decrease of 3% compared to the same quarter last year [18] - Gross margin improved to 31% from 30% in Q2 2024, driven by favorable market pricing trends [19] - Net income increased to $10.2 million or $0.23 per diluted share, compared to $9.6 million or $0.20 per diluted share in the previous year [20] Business Line Data and Key Metrics Changes - The company experienced slightly lower sales volume compared to Q2 2024, attributed to cooler spring weather and supply shortages [6][18] - Continued strength in the reclamation business was noted, leveraging enhanced refrigerant recovery capabilities [6] - The average selling price of refrigerants increased, with HSC pricing reaching $8 per pound during the quarter [8][20] Market Data and Key Metrics Changes - The regulatory landscape remains influenced by the AIM Act, which mandates the phase-down of HFCs [9] - The company is closely monitoring developments with the EPA regarding regulations that could impact the industry [9] Company Strategy and Development Direction - Hudson Technologies is focused on expanding its purchasing presence in the marketplace and enhancing its reclamation capabilities [6][12] - The company aims to bridge the supply gaps created by the phase-down cycles of HFCs and promote recovery and reclamation activities [14][15] - The capital allocation strategy includes investing in organic growth, pursuing acquisitions, and opportunistic stock repurchases [10][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slow start to the cooling season but expressed confidence in strong execution for the remainder of the selling season [22] - The company believes its recovery and reclamation capabilities position it well for future growth as the supply of newly manufactured refrigerants becomes limited [22] - Management remains optimistic about the long-term growth opportunities presented by the phase-down of HFCs [13][14] Other Important Information - The company ended the quarter with $84.3 million in cash and no debt, reflecting a strong unlevered balance sheet [20] - Hudson repurchased $2.7 million of stock during the second quarter, with a total of $4.5 million in shares repurchased in 2025 [20] Q&A Session Summary Question: Did the company see any benefit from the repair mix being up in the quarter? - Management noted that repair versus replace was an element of Q2 activity, leading to strong demand in the core business [25] Question: Can the company quantify the A2L market size? - The A2L market is currently relatively small for Hudson, but there is aftermarket demand due to changes in OEM units [26] Question: What is the current price of HFCs? - HFC prices peaked at around $8 per pound, with slight retraction observed [30] Question: How is the reclamation business performing? - The company does not report reclamation activity until the end of the year but is encouraged by the activity going into Q3 [31] Question: What is the status of the DLA contract? - The DLA contract is no longer a small business set aside, and the company is cautious about the competitive landscape for the new contract [62] Question: How do tariffs impact pricing? - Tariffs primarily affect imported refrigerants, benefiting prices for U.S.-sourced reclaimed refrigerants [69] Question: Will the volume of industrial gases and refrigerants in the DLA contract increase? - The company does not have clarity on the new contract's volume expectations but will provide updates once awarded [74]

[Earnings Release Overview](index=1&type=section&id=Earnings%20Release%20Overview) Hudson Technologies announced its Q2 2025 financial results, highlighting key performance metrics and providing an outlook on business strategies and market positioning [Q2 2025 Highlights](index=1&type=section&id=Q2%202025%20Highlights) Hudson Technologies reported Q2 2025 results with a slight revenue decrease but improved gross margin and a strong cash position, reflecting operational resilience despite a slow start to the selling season | Metric | Value | | :--------------------- | :---------- | | Second Quarter Revenue | $72.8 million | | Gross Margin | 31% | | Net Income | $10.2 million | | Diluted EPS | $0.23 | | Cash at June 30, 2025 | $84.3 million | | Debt at June 30, 2025 | No debt | - Revenue decreased by **3%** compared to Q2 2024, primarily due to decreased sales volume, partially offset by slightly increased pricing for certain refrigerants[7](index=7&type=chunk) - Gross margin improved to **31%** from **30%** in Q2 2024, mainly driven by slightly increased pricing[7](index=7&type=chunk) [CEO Commentary and Business Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Business%20Outlook) CEO Brian F. Coleman highlighted a solid Q2 performance, attributing improved gross margin to increased refrigerant pricing and enhanced sourcing of recovered refrigerants. He emphasized growth in the national reclamation business, strategic positioning for the HFC phase-down, and a disciplined capital allocation strategy focused on organic growth, acquisitions, and stock repurchases - Delivered a solid second quarter despite a slow start to the core selling season due to mild temperatures in the Northeast and Midwest[2](index=2&type=chunk) - Growth in the national reclamation business is attributed to Hudson's bolstered market presence and the strategic acquisition of USA Refrigerants[2](index=2&type=chunk) - The company is well-positioned for the third industry-wide HFC phase-down, which presents a significant long-term growth opportunity for reclaimed HFCs[4](index=4&type=chunk) - Strengthened unlevered balance sheet, ending the quarter with **$84.3 million** in cash, and committed to a capital allocation strategy focusing on organic growth, additive acquisitions, and opportunistic stock repurchases[5](index=5&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of Hudson Technologies, detailing its core business as a leading refrigerant reclaimer and its comprehensive range of services for the HVAC&R industry [About Hudson Technologies](index=2&type=section&id=About%20Hudson%20Technologies) Hudson Technologies, Inc. is a leading provider of innovative and sustainable refrigerant products and services to the HVAC&R industry, recognized as one of the largest refrigerant reclaimers in the U.S. The company offers a range of services including refrigerant sales, management, and specialized on-site services, along with energy monitoring and carbon offset projects - A leading provider of innovative and sustainable refrigerant products and services to the Heating Ventilation Air Conditioning and Refrigeration (HVAC&R) industry[11](index=11&type=chunk) - One of the first and largest refrigerant reclaimers in the United States, restoring refrigerants to Air-Conditioning, Heating, and Refrigeration Institute (AHRI) standards for reuse as certified EMERALD Refrigerants™[11](index=11&type=chunk) - Services include refrigerant and industrial gas sales, refrigerant management (reclamation), RefrigerantSide® Services (system decontamination), SmartEnergy OPS® (web-based monitoring), Chiller Chemistry®, Chill Smart® (predictive/diagnostic services), and carbon offset projects[11](index=11&type=chunk) [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) This section presents a detailed analysis of Hudson Technologies' financial results for the second quarter and first half of 2025, comparing key metrics against the prior year [Three Months Ended June 30, 2025 (Q2 Results)](index=1&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20%28Q2%20Results%29) For the second quarter of 2025, Hudson Technologies experienced a slight revenue decline of 3.2% year-over-year, reaching $72.8 million, primarily due to decreased sales volume. Despite this, gross margin improved to 31%, and net income increased by 6.1% to $10.2 million | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :------------- | | Revenues | $72,849 | $75,282 | -3.23% | | Cost of sales | $50,038 | $52,711 | -5.07% | | Gross profit | $22,811 | $22,571 | 1.06% | | Gross margin | 31% | 30% | +1 pp | | Selling, general and administrative | $9,265 | $9,013 | 2.79% | | Operating income | $12,724 | $12,798 | -0.58% | | Net income | $10,168 | $9,585 | 6.08% | | Net income per diluted share | $0.23 | $0.20 | 15.00% | [Six Months Ended June 30, 2025 (H1 Results)](index=2&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20%28H1%20Results%29) For the first six months of 2025, Hudson Technologies reported a 8.8% decrease in revenues to $128.2 million, driven by lower sales volume and decreased selling prices. Gross margin declined to 27% from 31% in the prior year, leading to a 32.5% decrease in net income to $12.9 million | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | YoY Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :------------- | | Revenues | $128,192 | $140,532 | -8.78% | | Cost of sales | $93,313 | $96,540 | -3.29% | | Gross profit | $34,879 | $43,992 | -20.71% | | Gross margin | 27% | 31% | -4 pp | | Selling, general and administrative | $17,435 | $16,960 | 2.80% | | Operating income | $15,799 | $25,574 | -38.22% | | Net income | $12,926 | $19,147 | -32.49% | | Net income per diluted share | $0.28 | $0.40 | -30.00% | - Revenues declined primarily due to a slight decrease in sales volume and decreased selling prices for certain refrigerants compared to the first six months of 2024[12](index=12&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section provides the complete consolidated financial statements, including balance sheets, income statements, and cash flow statements, offering a comprehensive view of the company's financial position and performance [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Hudson Technologies' total assets increased to $317.9 million from $302.7 million at year-end 2024, driven by higher cash and trade accounts receivable, partially offset by lower inventories. Total liabilities also saw an increase to $63.1 million | Balance Sheet Item (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Cash and cash equivalents | $84,293 | $70,134 | +$14,159 | | Trade accounts receivable – net | $35,883 | $13,629 | +$22,254 | | Inventories | $77,683 | $96,247 | -$18,564 | | Total current assets | $212,587 | $195,512 | +$17,075 | | Total Assets | $317,853 | $302,652 | +$15,201 | | Total current liabilities | $54,804 | $47,809 | +$6,995 | | Total Liabilities | $63,074 | $56,802 | +$6,272 | | Total Stockholders' Equity | $254,779 | $245,850 | +$8,929 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income provide a detailed breakdown of Hudson Technologies' financial performance for the three and six months ended June 30, 2025, showing revenues, cost of sales, gross profit, operating expenses, and net income compared to the corresponding periods in 2024 | Income Statement Item (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------------- | :------ | :------ | :------ | :------ | | Revenues | $72,849 | $75,282 | $128,192 | $140,532 | | Cost of sales | $50,038 | $52,711 | $93,313 | $96,540 | | Gross profit | $22,811 | $22,571 | $34,879 | $43,992 | | Selling, general and administrative | $9,265 | $9,013 | $17,435 | $16,960 | | Operating income | $12,724 | $12,798 | $15,799 | $25,574 | | Income before income taxes | $13,375 | $12,646 | $17,026 | $25,208 | | Income tax expense | $3,207 | $3,061 | $4,100 | $6,061 | | Net income | $10,168 | $9,585 | $12,926 | $19,147 | | Net income per diluted share | $0.23 | $0.20 | $0.28 | $0.40 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash provided by operating activities decreased to $20.6 million from $40.8 million in the prior year, largely due to changes in working capital. Cash used in investing activities significantly reduced to $1.9 million due to the absence of acquisition payments, while cash used in financing activities increased to $4.5 million, primarily for common share repurchases | Cash Flow Item (in thousands) | H1 2025 | H1 2024 | Change | | :---------------------------- | :------ | :------ | :----- | | Net income | $12,926 | $19,147 | -$6,221 | | Cash provided by operating activities | $20,569 | $40,835 | -$20,266 | | Cash used in investing activities | ($1,875) | ($22,755) | +$20,880 | | Cash used in financing activities | ($4,535) | ($2) | -$4,533 | | Increase in cash and cash equivalents | $14,159 | $18,078 | -$3,919 | | Cash and cash equivalents at end of period | $84,293 | $30,524 | +$53,769 | - The decrease in cash from operating activities was significantly influenced by changes in **trade accounts receivable** and **inventories**[20](index=20&type=chunk) - Cash used in investing activities decreased substantially due to no payments for acquisitions in H1 2025, compared to **$20.7 million** in H1 2024[20](index=20&type=chunk) - Cash used in financing activities was primarily driven by **$4.5 million** in common share repurchases during H1 2025[20](index=20&type=chunk) [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides additional context, including details on the Q2 2025 conference call, a safe harbor statement for forward-looking information, and investor relations contact details [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Hudson Technologies hosted a conference call and webcast on July 30, 2025, to discuss its second quarter 2025 results, with a replay available for access until August 29, 2025 - A conference call and webcast were held on Wednesday, **July 30, 2025**, at **5:00 p.m. Eastern Time** to discuss Q2 2025 results[9](index=9&type=chunk) - A replay of the teleconference is available until **August 29, 2025**, accessible via dial-in with conference ID: **52624**[10](index=10&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement) This section serves as a cautionary note regarding forward-looking statements within the report, highlighting that actual results may differ materially due to various known and unknown risks and uncertainties, including regulatory changes, market conditions, and economic factors - Statements not based on historical facts are forward-looking and involve risks, uncertainties, and other factors that could cause actual results to differ materially[13](index=13&type=chunk) - Key factors include changes in laws/regulations, demand/price for refrigerants, sourcing ability, seasonality, competition, litigation, and economic conditions[13](index=13&type=chunk) - Readers are cautioned against undue reliance on these statements, which are valid only as of the date they were made[13](index=13&type=chunk) [Investor Relations Contact](index=3&type=section&id=Investor%20Relations%20Contact) Contact information is provided for investor relations inquiries, including both the external investor relations firm and the company's President & CEO - Investor Relations Contact: **John Nesbett/Jennifer Belodeau** at **IMS Investor Relations**, **(203) 972-9200**, **hudson@imsinvestorrelations.com**[14](index=14&type=chunk) - Company Contact: **Brian F. Coleman**, **President & CEO**, **Hudson Technologies, Inc.**, **(845) 735-6000**, **bcoleman@hudsontech.com**[14](index=14&type=chunk)

Core Insights - Hudson Technologies reported a solid second quarter despite a slow start to the core selling season, with revenues slightly decreasing compared to the same period in 2024 [1][6] - The company achieved a gross margin of 31%, primarily due to increased pricing of certain refrigerants and improved sourcing of recovered refrigerants [1][7] - Hudson's national reclamation business is growing, attributed to its enhanced market presence and the strategic acquisition of USA Refrigerants [1][3] Financial Performance - For the second quarter ended June 30, 2025, Hudson reported revenues of $72.8 million, a decrease of 3% from $75.3 million in the same period of 2024 [6][7] - The net income for the second quarter was $10.2 million, or $0.23 per diluted share, compared to $9.6 million, or $0.21 per diluted share in the prior year [6][7] - For the first six months of 2025, revenues totaled $128.2 million, down 9% from $140.5 million in the first half of 2024 [5][14] Operational Highlights - The company ended the quarter with $84.3 million in cash and no debt, reflecting a strengthened unlevered balance sheet [4][9] - Selling, general and administrative expenses increased slightly to $9.3 million in the second quarter compared to $9.0 million in the same period of 2024 [7][14] - Hudson Technologies is focused on meeting refrigerant and reclamation needs, leveraging long-standing customer relationships [2][3] Strategic Positioning - The ongoing phase-down of HFCs presents a significant long-term growth opportunity for reclaimed HFCs, as demand will increase while the supply of newly manufactured HFCs becomes limited [3][4] - The company is committed to investing in organic growth, pursuing acquisitions, and opportunistically repurchasing stock to enhance shareholder value [4][12]