Hudson Technologies, Inc. announced that the U.S. Defense Logistics Agency (DLA) has rescinded its 2025 contract award pending a review of a bid protest filed by a competitor.
The rescinded contract, originally awarded in October 2025, was a five‑year, $210 million agreement set to begin in July 2026. The protest was lodged at the U.S. Court of Federal Claims and has led the DLA to suspend the award until the review is complete.
The DLA contract represented roughly 10‑15 % of Hudson’s annual sales. With the award withdrawn, the company will lose a predictable revenue stream that would have contributed about $42 million per year. Hudson will continue to provide logistics support under its existing contract through July 2026, but the uncertainty surrounding the new award could affect cash‑flow projections and the timing of capital‑expenditure plans.
CEO Kenneth Gaglione said the protest is a common occurrence in government contracting and that Hudson is confident it will ultimately regain the contract once the review concludes. CFO Brian Bertaux highlighted the company’s strong Q3 2025 results—revenue of $74 million and a 32 % gross margin—underscoring the firm’s financial resilience. Hudson’s cash position remains robust, with no debt and a sizable cash reserve, providing a buffer against the short‑term revenue gap.
Hudson has been a prime contractor for the DLA since 2016 and has built a diversified portfolio that includes refrigerant products, reclamation services, and a recent acquisition of Refrigerants Inc. for $2.5 million. The company also expanded its share‑repurchase authorization and was selected for California’s REFRESH pilot, signaling continued growth initiatives beyond the DLA relationship.
While the loss of the DLA contract introduces volatility into Hudson’s earnings profile, management’s confidence and the company’s strong balance sheet suggest that the impact may be limited in the short term. The event will likely prompt a reassessment of Hudson’s contract‑winning strategy and risk‑management practices, as the firm seeks to mitigate future exposure to bid protests and maintain a diversified revenue base.
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