Hudson Technologies, Inc. (NASDAQ: HDSN) was named on December 9 2025 as one of two reclamation providers selected by the California Air Resources Board (CARB) to participate in the state’s REFRESH (Refrigerant F‑gas Reclamation Support for Home HVAC) pilot program. The partnership will see Hudson work with refrigerant contractors under the California Energy Commission’s Equitable Building Decarbonization program to purchase recovered HFCs and HCFCs for reclamation, while Hudson will train technicians in best‑practice recovery techniques. The pilot is funded through CARB’s F‑gas Reduction Incentive Program (FRIP), which offers up to $5 million in incentives to support the buyback of recovered refrigerants and cover administrative and labor costs.
Hudson’s entry into the REFRESH program is strategically significant because California is the nation’s largest single‑state HVACR market and the state’s regulatory framework is aggressively moving toward lower‑GWP refrigerants. By securing this partnership, Hudson gains immediate access to a high‑volume customer base and positions itself to capture revenue from the growing demand for reclaimed refrigerants under state‑level mandates. The program also reinforces Hudson’s stated focus on expanding its reclaimed refrigerant supply chain, strengthening its competitive moat in a market that is increasingly regulated toward lower‑GWP solutions.
Hudson’s financial foundation for the partnership is robust. In Q3 2025 the company reported revenue of $74.0 million, up 20% year‑over‑year, with a gross margin of 32.0% and net income of $12.4 million. This compares favorably to Q4 2024, when revenue was $34.64 million, a gross margin of 17%, and the company posted a net loss of $0.06 per share. The Q3 2025 results demonstrate a clear turnaround driven by higher sales of reclaimed refrigerants and improved pricing power, setting a solid base for the incremental revenue that the REFRESH pilot is expected to generate.
The partnership is expected to add incremental revenue in the coming years, but it also introduces new operational responsibilities. Hudson will need to scale its reclamation capacity and develop training programs for technicians, which could temporarily compress margins. However, the $5 million FRIP incentive and the long‑term demand for reclaimed refrigerants under California’s mandates provide a tailwind that offsets short‑term investment costs. Management has highlighted that the partnership aligns with Hudson’s broader strategy to become the leading provider of sustainable refrigerant services in the United States, and the company anticipates that the pilot will serve as a model for similar programs nationwide.
Kate Houghton, Senior Vice President of Sales & Marketing, said, “Being selected for CARB’s REFRESH program is a testament to Hudson’s expertise and reputation in the reclaimed refrigerant space. The partnership not only expands our customer base in California but also positions us to capture future opportunities as the industry shifts toward lower‑GWP solutions.” Her comments underscore the company’s confidence in the program’s long‑term value and its alignment with Hudson’s growth objectives.
The REFRESH pilot is part of CARB’s broader F‑gas Reduction Incentive Program, which allocated $38.5 million for commercial and industrial refrigeration in Round 2. The program is administered by the North American Sustainable Refrigerant Council (NASRC) and is linked to the California Energy Commission’s Equitable Building Decarbonization initiative. Industry analysts note that the regulatory push toward lower‑GWP refrigerants is accelerating, creating a growing market for reclaimed refrigerants and positioning Hudson to benefit from a sector that is rapidly expanding due to climate‑related mandates.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.