Image source: The Motley Fool.
DATE
Wednesday, July 30, 2025 at 9:00 p.m. ET
Call participants
President and Chief Executive Officer — Brian F. Coleman
Chief Financial Officer — Brian J. Bertaux
Senior Vice President of Sales and Marketing — Kathleen L. Houghton
Need a quote from a Motley Fool analyst? Email [email protected]
Takeaways
Revenue:Hudson Technologies(HDSN 1.70%) reported $72.8 million in revenue for Q2 2025, a 3% decrease, with lower sales volume attributed to a late start in the cooling season, partially offset by higher average selling prices.
Gross margin: Gross margin was 31%, up from 30% in 2024, driven by improved market pricing and sequential increases in refrigerant prices for the first time in two cooling seasons.
Gross profit: Gross profit was $22.8 million, slightly higher than in 2024.
SG&A expenses: SG&A expenses were $9.3 million, slightly higher due to increased staffing.
Operating income: Operating income was $12.7 million, compared to $12.8 million in 2024, as higher SG&A expenses offset gross profit increases.
Net interest income: Net interest income was $700,000, a reversal from $200,000 in net interest expense in 2024, reflecting improved liquidity and no debt.
Net income: Net income was $10.1 million, or $0.23 per diluted share, compared to $9.6 million, or $0.20 per diluted share in 2024 (GAAP).
Balance sheet: The company ended the quarter with $84.3 million in cash and no debt, providing an unlevered financial position.
Share repurchases: $2.7 million was repurchased in Q2 2025, totaling $4.5 million in share buybacks year to date.
Refrigerant pricing: HFC 410A peaked at $8 per pound, which favorably impacted gross margin.
Reclamation business: Management described “continued strength” in the reclamation business, with specific volume data to be reported at year end; the segment is now fully integrated following the USAAC acquisition.
DLA (Defense Logistics Agency) contract: Second quarter orders were in line with internal expectations and consistent with the anticipated annual run rate; results for the new award are expected later this year.
Full-year margin guidance: The gross margin target for fiscal 2025 remains mid-20%, with potential for slight upside depending on third-quarter strength, based on current visibility and Q4 seasonality.
Market dynamics: Aftermarket demand for A2L refrigerants (454B and 32) is currently “relatively small,” but management expects aftermarket volume for A2L refrigerants could double next year as legacy HFC equipment phases out.
Summary
Management emphasized the impact of weather delays on sales and highlighted sequential price increases in key refrigerants, which contributed to margin improvement and strategic positioning for industry supply shifts driven by regulatory phase-downs. Executives expressed confidence in end-market demand trends through the third quarter and reiterated a balanced capital allocation approach, including organic investments, acquisitions, and opportunistic buybacks.
Chief Financial Officer Bertaux said, "We generally do get a benefit with price increases on the profitability of recovered gas," explicitly tying higher spot prices to improved operating income.
Senior Vice President Houghton said, "We are encouraged by the increased sales activity we saw late in the second quarter, which is continuing into the third quarter."
Management described ongoing engagement with the EPA and Congress regarding the AIM Act and regulatory shifts, maintaining a proactive industry advocacy stance.
The company reported industry education as a demand catalyst, citing outreach to technicians and contractors to expand reclamation and market adoption.
Industry glossary
HFC: Hydrofluorocarbon, a class of refrigerants subject to regulatory phase-down under the AIM Act.
AIM Act: American Innovation and Manufacturing Act, federal legislation mandating phased reduction in HFC production and consumption.
A2L: An industry classification for mildly flammable, lower-GWP (global warming potential) refrigerants, including R-454B and R-32.
DLA: Defense Logistics Agency, a federal agency with which Hudson holds supply contracts.
LEED: Leadership in Energy and Environmental Design, a global green building certification system recently recognizing reclaimed refrigerant usage.
GWP: Global Warming Potential, an environmental metric for refrigerants referenced in regulatory and industry transitions.
Full Conference Call Transcript
Brian F. Coleman: So good evening, and thank you for joining us. Sometimes happens. We had a slow start to this year's cooling season, which is why we always refer to a nine-month selling season rather than looking at it quarter to quarter. Our industry is driven by comfort cooling, so we are obviously weather dependent. We focus on things that we could control. That focus is centered on ensuring we best serve our customers' needs at all times, which could mean we are buying the recovered refrigerant or selling them refrigerant to meet theirs or their end customer's demand. During the quarter, we did see a lift in nearly all refrigerant pricing, some of which had to do with tariff increases.
However, we did experience slightly lower sales when compared to the second quarter of last year. In spite of the external conditions, such as cooler spring weather and supply shortages relative to replacements of lower GDP refrigerants, we posted solid second quarter results with revenues of $72.8 million and a gross margin of 31%. During the quarter, we saw continued strength in our reclamation business, as we leveraged our enhanced refrigerant recovery capabilities. We remain focused on expanding our purchasing presence in the marketplace with both new and existing customers, as we have historically done. We will provide a more detailed update around the progress in our reclamation business as the full year wraps up.
As we have often mentioned, recovered refrigerants typically trail refrigerant sales by one quarter each season. DLA orders during the second quarter were in line with our expectations and our anticipated annual order run rate for the DLA contract. We are now entering our tenth year serving the DLA DOD needs, and we believe we will have information on the new contract award results later this year. As I mentioned a moment ago, refrigerant pricing improved in the second quarter, showing a sequential increase for the first time in the past two cooling seasons. When we discuss pricing, we are generally focused on the price of HSC 410A, which represents about 70% of the total aftermarket demand for HFCs.
During the course of the second quarter, HSC pricing reached $8 per pound and favorably impacted our gross margin performance. Currently, we are seeing stabilizing prices with some slight declines from the second quarter, which may be associated with the volatility of tariffs. Therefore, with our visibility today and recognizing quarter four is our seasonally slowest quarter, we are maintaining our full year 2025 gross margin target of mid-20% or potentially slightly higher depending on the strength of the third quarter. Looking at the broader regulatory landscape, the elements of the AIM Act, including the mandated phase down of HFCs, remain in place.
That said, it is our understanding that the new leadership at the EPA is continuing their evaluation of certain regulations, including the AIM Act. We are closely monitoring all the developments and are in direct and frequent communication with the EPA as well as members of Congress. Our unlevered balance sheet at 06/30/2025 reflects $84.3 million in cash and no debt. Our capital allocation strategy remains committed to the three pillars: investing in organic growth, pursuing acquisition opportunities that will strengthen our capabilities, and the opportunistic repurchase of our stock. Keeping with the strategy, we repurchased $2.7 million of stock during the second quarter. Now I will introduce Kathleen L.
Houghton, Senior Vice President of Sales and Marketing, to provide some additional detail around market opportunity. Please go ahead, Kate.
Kathleen L. Houghton: Thank you, Brian, and good evening, everyone. As Brian mentioned, our second quarter sales volume was impacted by prolonged cooler weather in the Northeast and Midwest, where temperatures did not meaningfully warm up until mid-June. As you know, our sales cycle is typically driven by the first few hot days of any summer when cooling systems are activated, and operating issues present themselves, resulting in a service appointment. We are encouraged by the increased sales activity we saw late in the second quarter, which is continuing into the third quarter.
Throughout every selling season, we focus on the parts of our business that we can control, which include making sure our customers have the refrigerants they need where and when they need them, and promoting recovery and reclamation activities as our industry transitions to lower GWP equipment and refrigerants. Our longstanding customer relationships have thrived based on our ability to provide our customers with a full range of refrigerants to efficiently run their business, combined with their reciprocity in returning to us the recovered refrigerants that fuel our reclamation business.
We remain confident that the current phase down of HFC refrigerants represents a significant long-term growth opportunity for Hudson, as reclaimed HFCs will be increasingly necessary to allow the installed base of units to achieve their full economic life as the supply of virgin HFCs becomes more limited. As a reminder, HFC equipment currently represents the largest portion of the installed base and typically has a lifespan of approximately twenty years. So the demand tail for HFC refrigerants is expected to be long.
With our national footprint and robust customer network, we have the ability to drive sales growth for new refrigerants while also serving as a proponent and resource for recovery and reclamation activities as we bridge the supply gaps created by the phase down cycles designed to move the industry to lower GWP refrigerants. Hudson is well-positioned to benefit not only from the federally mandated phase down of HFCs, imposed by the AIM Act, but also from state-by-state initiatives. For example, several states have already instituted requirements for the use of reclaimed refrigerant in their municipal bidding and building, and we expect more to follow.
Recently, the US Green Building Council recognized the role of reclaimed refrigerants in the LEED version five program. LEED, which stands for Leadership in Energy and Environmental Design, was established twenty-five years ago and is recognized globally as a green building rating system. We are encouraged that reclaimed refrigerants are now on the radar of LEED professionals. Importantly, as contractors better understand that they will need reclaimed refrigerant to serve their customers as mandates create shortages in virgin supply, they are less likely to vent refrigerant in the process of servicing a unit.
Our team here has devoted a great deal of time and effort to training technicians around best field practice recoveries and the benefits of responsible life cycle refrigerant management. We are a frequent presence at HVACR conferences and training events, and we are often invited to address technician training sessions hosted by our customers. During the second quarter, Hudson attended and spoke at Lennox Live and Service Nation events and supported World Refrigeration Day. As our industry continues its ongoing pursuit of lower GWP refrigerants and equipment, Hudson remains a key supplier of next-generation refrigerants.
At the same time, we play a leadership role in promoting recovery and reclamation that will bridge the transition so that our customers are prepared to continue to service the full life cycle of legacy units. Now I will turn the call over to Brian J. Bertaux, our CFO, to review our second quarter financial results. Go ahead, Brian.
Brian J. Bertaux: Thank you, Kate, and good evening, everybody. I will now review Hudson's second quarter 2025 financial results with a comparison to 2024. Hudson recorded $72.8 million in revenue, a decrease of 3%. As Brian and Kate noted, refrigerant sales volume was slightly lower than last year due to a late start to the summer weather in the Northeast and Midwest. This was partially offset by an increase in the average selling price of refrigerants. Gross margin was 31% compared to 30% in 2024, with the improvement driven by favorable trends in market pricing. Gross profit at $22.8 million was slightly higher than in 2024.
While gross margin in the second quarter improved due to favorable market pricing trends, we are maintaining our full year 2025 gross margin target of mid-20%, with some upside potential. As we have seen slight moderation in pricing levels thus far in Q3. We posted $9.3 million in SG&A expenses, which was slightly higher than last year due to increased staffing. The improvement in gross profit, which was offset by increased SG&A costs, put operating income at $12.7 million, just shy of the $12.8 million posted last year. We recorded net interest income of $700,000 compared to net interest expense of $200,000 last year, reflecting the improved liquidity from the company's unlevered balance sheet.
Hudson recorded net income of $10.1 million or 23¢ per diluted share compared to net income of $9.6 million or 20¢ per diluted share in 2024. The company strengthened its unlevered balance sheet, ending the quarter with $84.3 million in cash and no debt. Our capital allocation strategy remains focused on organic and strategic growth as well as opportunistic share repurchases. In keeping with this strategy, we repurchased $2.7 million of stock early in the second quarter. We have purchased $4.5 million in shares thus far in 2025. I will now turn the call back to Brian F. Coleman. Thank you, Brian.
In the short term, we remain focused on driving strong execution as we move through the balance of the selling season to ensure we are meeting refrigerant and servicing needs of our customers. Long term, we believe our recovery and reclamation capabilities position us well to become a supply source of reclaimed refrigerants as ongoing phase downs limit the supply of newly manufactured refrigerant. Our industry will continue to pursue the development and use of lower GDP refrigerants, and Hudson has the expertise, facilities, and distribution network to bridge the transition for all types of refrigerants. Operator, we will now open the call to questions.
Operator: Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press 1 on your phone at this time. We do ask that while posing your question, please pick up your handset if you are listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press 1 on your phone. Thank you. Your first question is coming from Ryan Ronald Sigdahl from Craig Hallum. Your line is live.
Ryan Ronald Sigdahl: Hey, guys. Nice quarter. I want to start with just the industry. I have been hearing others talk about repair mix being up in the quarter given supply challenges on the R54 and A2L side, both system and gas. Did you guys see any benefit from that via your HFC and kind of aftermarket business? And then did you participate directly in any of that aftermarket sell into the HUL from a new system and sell standpoint, given systems were in some instances supplied by the aftermarket versus precharged and sold?
Kathleen L. Houghton: Sure. Good evening, Ryan. How are you doing? We did see repair versus replace being an element of Q2 activity, leading to relatively strong demand in our core business. We do already participate in the aftermarket sales of A2L refrigerants, both 454B and 32. So we are really covering both the existing HFCs and also already working in the A2L space in the aftermarket.
Ryan Ronald Sigdahl: Kate, are you able to quantify kind of how big the HOL market is for Hudson?
Kathleen L. Houghton: At this point, it is relatively small. There is an aftermarket demand because many systems in the installation need a small amount of refrigerant due to the change in charge on OEM units, but it is still small relative to the overall business at this point.
Brian J. Bertaux: Yeah. And maybe one thing to add, Ryan, to that question. You are still seeing the sellout of, let's say, 410A equipment or other equipment that was manufactured in '24. That sellout is happening pretty rapidly. So possibly, although we are not giving guidance on next year, but you could possibly expect to see almost a doubling in volume with A2Ls next year because at that point, there should be no 410A or other high GDP units in the system to be then installed. So we are on a growth trajectory of what the future will be for both 454B and 32.
Ryan Ronald Sigdahl: Maybe just a follow-up question on that, Brian. I guess we were hearing shortages, so there was more kind of aftermarket charges versus precharged systems. I guess assuming the supply chain is more normalized by next year, you still think you can double the A2L and the HFO volumes even considering most still come precharged from the factory.
Kathleen L. Houghton: So what you are referring to is that their units come precharged from the factory. However, the charges are supporting less of a line set for installation than some of the traditional HFC units have. So it is unclear if the OEMs will make significant changes to that going into next year. So at this point, we do think that doubling of that volume in the aftermarket for installation is very reasonable.
Ryan Ronald Sigdahl: Very good. Moving over to HFCs. What is the current price? I know you said $8. It kind of peaked out at in the quarter, but what is the current price there?
Brian J. Bertaux: It is peaked out around 8. Sometimes it is a little above. And, again, when we say 8, we are really talking about 410A. We have seen a slight retraction in that price, but we are pretty much steady in that range.
Ryan Ronald Sigdahl: Good. And then can you quantify from a reclamation standpoint whether it is volume in that you have bought or volume out, whichever you want to quantify, but kind of how much that has grown and where the reclamation business is?
Kathleen L. Houghton: So we do not report reclamation activity until the end of the year, but we are encouraged by the activity that we have going into Q3.
Brian J. Bertaux: Probably at this point, the influence of the USA acquisition is kind of difficult to break out any longer because it is fully integrated. So, certainly, the USAAC acquisition and the team that came over jump-started our growth rate, but we have added new initiatives to support what they were doing and broaden that across the country. So we are probably not going to be separating, let's say, USA reclaim activity versus Hudson activity any longer.
Ryan Ronald Sigdahl: Good. Last question for me just on the HFC kind of sorry, jumping around back to that. But how do you feel about the stockpile kind of current in-channel inventory at this point?
Brian J. Bertaux: It is a good question to ask, but it is still a little early for us to answer directly. First off, hopefully, everyone knows, the EPA should be releasing the 2024 inventory data. We think it might be September, October. And that we will be able to talk about that relative to our third quarter results. We do think that there is some stabilizing, let's say, between the annual allowances and the overall demand. Where in the past, we were a little concerned that the allowances may be ahead of demand.
But, again, it is really hard to tell because back to some of your early questions and you have got channel checks, there was a lot of difficulties forecasting what the 454B and 32 demand particularly for the aftermarket would be for this year. And because a lot of the producers that were involved in those products were adding a significant amount of capacity and finally getting to the point where I think they are catching up and equaling supply and demand. It is hard to say how that is impacting all the other HFCs. But we will report all that on the third quarter.
Ryan Ronald Sigdahl: Very good. Thanks, Brian. Thanks, Kate.
Kathleen L. Houghton: Thank you.
Operator: Your next question is coming from Gerard J. Sweeney from ROTH Capital. Your line is live.
Gerard J. Sweeney: Good afternoon. Thanks for taking my call.
Brian J. Bertaux: Good evening, Gerry.
Gerard J. Sweeney: Couple of quick questions here. Channel checks, our channel checks indicated even though 2Q started slow, our understanding is volume and demand has been very strong across most refrigerants up until the end of the week last week. Just curious if you could give a little bit of detail on volumes and I know August 15 is sometimes the flipping point for the heating and cooling season, but any thoughts on just the trend on volumes going forward?
Kathleen L. Houghton: Well, I think it is the equivalent of 105 degrees here in New York. I am not sure that August is going to be the date this year, Gerry? But we will see what happens there. Yeah. We have seen strong since that mid-June, we have seen strong volume and activity, and that is continuing up until now. And so, again, with the heat around the country, in a lot of areas, we are continuing to expect to have a very solid Q3.
Gerard J. Sweeney: Got it. Comment in the prepared remarks about the EPA and the AIM Act and discussions. And when the AIM Act came about, my understanding was probably bipartisan and hit a lot of key areas people were looking for. Right? Because it was a new molecule, it was patented. It blocked some growth or some refrigerants from China because it is a new molecule. It was an equipment upgrade cycle. Alright. So that is sort of, we will say, the right side of the aisle like that, the left side like the phase out of, you know, GWP refrigerants.
Just curious if there is anything we should be looking further into what is going on with some of those discussions or any changes, but it seemed like it checked a lot of the right boxes. The last go around. So any comments on that front?
Brian J. Bertaux: Yeah. So, again, if we all go back in time, President Trump executed the AIM Act in December 2020. There is just a lot of difficult signals to interpret relative to either what you might hear out of the White House or even what you might hear out of the EPA administrator. Clearly, they are looking at many I cannot say all, but many regulations and looking to dial back regulations that they deem somehow negatively impact the competitiveness, let's say, of US business? Now I am sure it is a lot broader than that and there are a lot more complications to that.
Even recently, you heard the EPA administrator talk about, you know, they no longer are deeming, you know, carbon emissions as hazardous to humans' health. Again, that kind of statement probably does not necessarily have a direct impact on the AIM Act and the components to the AIM Act. It probably affects a lot of other areas regarding other emissions and things like that. But no matter what, Hudson and I would say the rest of the industry is very, very diligent currently with both the EPA and with Congress to reinforce how we got here and why we got here. And how the AIM Act really was a bipartisan policy and law.
And we feel still very strongly that reclamation, without a doubt, is very important for the long-term benefit of American consumers. Because without reclamation, it is likely you will not be able to attain the full economic life of your unit, which therefore means you are going to have to accelerate a capital outlay for, let's say, a residential unit, like in your home, you are talking about maybe $12,000. So it is not cheap. So we think this administration and the EPA recognize the value of reclaim, and we will continue to support that.
Gerard J. Sweeney: Okay. Sticking with the reclaim theme here. Obviously, I know you do not want to get into the volumes or anything like this, so this is more of a qualitative on that front. But, Ralph, doing a lot of seminars teaching, etcetera, etcetera. Are you noticing maybe a different tone or tenor with some of the contractors? Do you think more and more people are understanding it or more people are attending? I am just curious if maybe some of those grassroots type of upswell of maybe where Reclaim is headed.
Kathleen L. Houghton: Yes, it is a great question. When we do a lot of speaking, we are out doing webinars and podcasts and conferences. And, you know, it is a significant part of the education process that we undertake here. I really believe that it is starting to take hold. Every time we talk to an audience, we still have contractors say, are you kidding me? Are you really going to pay? Are you sure there are not fees? But, you know, we are starting to reach more and more folks.
And once we have a contractor that does a recovery and sends it in and does the return and gets the check, it is just something that they do over and over again. It becomes second nature, becomes part of their business. So, you know, with the there are about 500,000 contractors in the country. We probably have not talked to half of them yet, but we are well on our way.
Gerard J. Sweeney: Got it. Okay. I will jump back in queue. I will not ask too many questions, but thank you.
Brian J. Bertaux: Thank you, Jerry. Thanks, Jerry.
Operator: Thank you. Your next question is coming from Josh Nichols from B. Riley. Your line is live.
Josh Nichols: Yeah. Thanks for taking my question. Great to see the good margin. Even with what you said was a little bit slower start to the year. It seems that things ended on a high note, which is good to see, and that has been carrying through. Just for context, I was going back in some of my notes. If we look at, like, the back half of next year, you know, of last sorry, of last year of '24, HFC prices were down to, like, $6 a pound. Right?
I think and where they are today, if they are right around the $8 pound level, I guess, that without going too much down the rabbit hole in terms of guidance, like, fair to assume that you would expect revenue and gross margin, you know, to be up 3Q and 4Q if pricing maintains where it is through the remainder of the year.
Brian J. Bertaux: Yeah. Well, as we noted in the script, you really cannot rely on Q4. It is just out of season. Do see that prices are pulling back a little bit. So we do expect to have a strong Q3. You can expect another strong margin performance in Q3. But Q4 will be soft due to seasonality. So when we look at that, with the slow start in Q1, it still looks like the mid-25 margin target for the year with the potential for some upside is still where we feel comfortable.
Josh Nichols: Fair enough on that. I think we talked about inventory levels. And overall, I guess there is no update you mentioned on the DLA contract. It is an open contract in anything you could tell us in terms about the competitive nature or how many people are going forward or people that historically had this contract or other similar contracts before. Know you previously mentioned it. You felt that you were in a good position given your good delivery schedule over the past.
Brian J. Bertaux: Yeah. So let's say the one potential negative about this proposed proposal for, you know, to serve the next years is that it was no longer constructed as a small business set aside, which certainly gave us an advantage when we won this over ten years ago. We do not know how many people have been on it. We would imagine it is somewhere in the five to ten range. We do not think it is more than ten, but we certainly do not think it is less than five. We do have a very high level of success in terms of on-time performance and so forth.
All the metrics, relative to the existing, you know, nine years now that we have served them. But what we do not know is who the other bidders are, what types of activities they may or may not have, serving the DLA. And other contract needs. So we are just always being cautious. We think at this point, they are pretty far down the road. But we do not know, frankly, when they are going to make a decision. It is not like a shock clock, and it is going to happen on a particular date and time. But we obviously will make an announcement once we find out who wins the contract.
Josh Nichols: Appreciate it. Thanks, Brian.
Operator: Thank you. Your next question is coming from Austin Nathan Moeller from Canaccord. Your line is live.
Austin Nathan Moeller: Hi. Good afternoon. Just so my first question here, you mentioned on the call that some of the price increase was impacted by tariffs. So could you just indicate is that primarily affecting refrigerants that are being imported, which is benefiting prices for reclaim sourced in the United States. And then if there were any changes to tariffs, what would you expect the impact to be on pricing?
Brian J. Bertaux: Yeah. So it is a great question. And you are right. The tariff and its impact would be on imported refrigerants. But also imported steel. And so and then we would supply, for example, we would have a supplier of cylinders that is domestic. But we would not always understand or know directly where their steel is coming from. So there is volatility, at times, in what the steel prices are. Also, what we would have seen, and I am sure you have all observed, is, you know, high rates from a product that could be coming from China. There were higher rates in product that would be coming from India, which would be tied to refrigerants as well.
There has been some element of stability over the last number of months. So we would have had, let's say, higher peaks of particularly those two countries' tariffs that have come down. So we are attributing some of the price increase overall and then a little bit of retraction to some of the up and down on the tariff side. But you are also correct in your assumption that because recovered refrigerants are all US sourced, there is no impact to tariffs and so on down the line. So we generally do get a benefit with price increases on the profitability of recovered gas.
And so if you put it in the context, just trying to use a very simple example, if the price is 6, maybe on a recovered basis, we could be making close to $3 per pound when we sell a reclaimed pound. When the price is 8, we could be making maybe $4. So for the same effort and so on down the line, we are getting an extra dollar per unit profit, and that incremental dollar generally will fall to the operating line because our SG&A does not move up and down as the price of refrigerants moves up and down.
Austin Nathan Moeller: Okay. And then just on the DLA contract, when it is renegotiated, do you expect that the volume of industrial gases and refrigerants that they procure may go up, and so there may be a premium on that contract relative to the last time you negotiated it?
Brian J. Bertaux: We would not know that, to be honest. We would kind of expect so we had I guess it was two years ago, a great surge in demand on the contract. But it only lasted for about twelve months. The contract, let's say, volumes have been a little higher on the last number of years compared to the early years. I think part of it is about marketing that we have engaged with the DLA on to try to get more participants buying through the contract versus around the contract. But at the moment, we really do not know a whole lot of what the new contract is exactly going to look like.
But we would not necessarily anticipate higher volumes once the award comes out. But we will give updates on all that once we hear who gets awarded the contract.
Austin Nathan Moeller: Thanks. That is very helpful. Thanks for the details.
Operator: Thank you. That concludes our Q&A session. I will now hand the conference back to Brian F. Coleman for closing remarks. Please go ahead.
Brian F. Coleman: Thank you, operator. I would like to thank our employees for their continued support in what was really a tough quarter based on the conversation we have had this evening and the dedication to our business and both for long-term shareholders and those that recently joined us for their support as well. We look forward to speaking with you after the third quarter results. Have a great night, everybody.
Operator: Thank you, everyone. This concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.