HDSN Stock In Spotlight As Contract With US DLA Comes Under Legal Scrutiny
Synopsis
The company said a recently awarded contract with the U.S. Defense Logistics Agency has been temporarily rescinded following a legal challenge from a competitor.
- The company was awarded the $210 million contract in October 2025 and was scheduled to begin work in July 2026.
- The contract covers the supply and management of refrigerants, compressed gases, cylinders, and related products.
- The agency has pulled back the award to determine whether any corrective action is needed.
Hudson Technologies (HDSN) on Friday said its recently awarded contract with the U.S. Defense Logistics Agency was temporarily rescinded following a legal challenge from a competitor.
HDSN stock fell over 8% in pre-market but recovered most of the losses after the opening bell.
The company was awarded the contract in October 2025 following a competitive rebidding process and was scheduled to begin work in July 2026. However, the DLA is now re-examining its proposal evaluation after the rival filed a bid protest with the U.S. Court of Federal Claims.
During this review, the agency pulled back the award to determine whether any corrective action is needed. Hudson noted that the legal challenge does not affect its current operations and that it will continue to provide logistics and refrigerant support under its existing DLA contract, which remains in effect through July 2026.
“While this development is disappointing, bid protests are a common occurrence in government contracting matters, and we are confident that Hudson is in the best position to ultimately receive this contract,” said Kenneth Gaglione, President and CEO of Hudson Technologies.
$210 Million, 5-Year Contract
Hudson was awarded a $210 million contract from the DLA for an initial five-year term, with an option to extend for another five years.
The contract covers the supply and management of refrigerants, compressed gases, cylinders, and related products for U.S. military installations and federal civilian agencies, including the Army, Navy, Air Force, and Marine Corps.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits remained in the ‘bullish’ territory over the past 24 hours.
HDSN shares have risen more than 20% over the past year.
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