Hudson Technologies, Inc. announced a licensing agreement with Solstice Advanced Materials, Inc. that authorizes the company to reclaim and resell the HFO refrigerant blends R‑448A and R‑449A in the United States and Canada.
The deal comes at a time of accelerating regulatory pressure on high‑global‑warming‑potential (GWP) refrigerants. The EPA’s 2029 phase‑down of HFCs, along with California and New York state mandates—including a March 31, 2026 ban on virgin R‑404A and R‑507A—create a strong tailwind for lower‑GWP alternatives such as R‑448A and R‑449A.
Hudson’s agreement builds on an existing licensing relationship with Solstice and expands the company’s ability to supply reclaimed refrigerants to customers seeking compliant, lower‑GWP options. The partnership positions Hudson to capture demand in the commercial refrigeration market, where supermarkets and other large‑scale facilities are rapidly transitioning to the new blends.
Financially, Hudson reported Q4 2025 revenue of $44.4 million, a 28% year‑over‑year increase, and full‑year 2025 revenue of $246.6 million, up 4% from 2024. The company posted a net loss of $8.6 million in Q4 2025 and net income of $16.7 million for the full year, down from $24.4 million in 2024. Gross margin fell to 25.2% in 2025 from 27.7% in 2024, reflecting higher freight costs and inventory‑related expenses. Management guided for Q1 2026 revenue growth in the low‑to‑mid‑single‑digit range year‑over‑year, with gross margins expected to remain comparable to 2025.
Ken Gaglione, Hudson’s CEO, said, "This agreement provides Hudson a meaningful opportunity to grow our presence in the commercial refrigeration space by enabling our reclamation and resale of patented next‑generation lower GWP refrigerants."
The licensing deal strengthens Hudson’s competitive moat and creates new revenue streams as the industry moves away from legacy HFCs, while the company continues to navigate margin pressures and cost inflation highlighted in its recent earnings.
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