Gross margin improved to 31% from 30% in Q2 2024, driven by favorable refrigerant pricing trends, with gross profit at $22.8 million, slightly higher than last year.
Hudson Technologies reported second quarter 2025 revenues of $72.8 million, a 3% decrease compared to the same quarter last year, primarily due to slightly lower sales volume from a cooler spring season.
Net income rose to $10.2 million or $0.23 per diluted share, compared to $9.6 million or $0.20 per diluted share in Q2 2024.
Operating income was $12.7 million, just below the $12.8 million from the prior year, impacted by increased SG&A expenses of $9.3 million due to higher staffing.
Stock repurchases totaled $2.7 million in Q2, with $4.5 million repurchased year-to-date.
The company ended the quarter with $84.3 million in cash and no debt, maintaining an unlevered balance sheet.
Adjusted EBITDA margins improved to nearly 18%, up from 16.5% in the prior year, supported by strong gross margin expansion of 170 basis points to 39.3%.
Adjusted net income was $97 million or $1.65 per share, compared to $82 million or $1.35 per share in the prior year.
Cash flow from operations was $72 million, slightly down from $78 million prior year, and free cash flow was $14 million compared to $15 million, impacted by higher working capital and capital expenditures.
Domestic segment sales increased 7% to $884 million with adjusted EBITDA margin of 17.9%, while international segment sales increased 7% to $197 million with adjusted EBITDA margin of 15%.
GAAP net income rose to $74 million from $59 million in the prior year quarter, with diluted net income per share increasing to $1.25 from $0.97.
Operating expenses increased 12% due to higher variable costs from shipment volumes, increased employee costs, and expenses related to recent acquisitions.
Second quarter net sales increased 6% year-over-year to $1.06 billion, driven by 7% growth in residential product sales and 5% growth in commercial and industrial (C&I) product sales.
Adjusted EBITDA margin increased 90 basis points sequentially but was down 60 basis points year-over-year due to gross margin pressure.
Adjusted EPS was $3.39, up 6% year-over-year.
CSS segment grew 17% organically, EES grew 6%, while UBS declined 4% in Q2.
Free cash flow was $87 million in Q2, representing 45% of adjusted net income, with $644 million generated on a trailing 12-month basis.
Gross margin was 21.1%, flat sequentially but down 80 basis points year-over-year due to project and product mix.
Net working capital intensity improved by 60 basis points year-over-year to 19.9%.
Preferred stock redemption in June improved earnings and cash flow run rates, with an estimated annualized benefit of $32 million or $0.65 per diluted share.
Total data center sales surpassed $1 billion in Q2, up 65% year-over-year.
WESCO reported accelerating sales momentum with 7% organic sales growth in Q2 2025, following 6% growth in Q1.
Dafinchi