How Did Avalon Holdings Corporation (NYSEAM:AWX) Lift Third-Quarter Profit Despite Lower Revenue?

Sonal Goyal

09 November 2026 04:25 PM AEDT

How Did Avalon Holdings Corporation (NYSEAM:AWX) Lift Third-Quarter Profit Despite Lower Revenue?

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Key Highlights

Net operating revenues were $24.3 million in the third quarter of 2026, compared with $25.7 million a year earlier.
Net income attributable to common shareholders rose to $2.7 million, or $0.69 per basic share, from $1.9 million, or $0.49 per share.
Waste management services revenue declined to $11.1 million, while golf and related operations revenue increased to $13.2 million.
Cash and cash equivalents stood at $6.3 million at September 30, 2026, up from $4.1 million at December 31, 2025.

Avalon Holdings Corporation (NYSEAM:AWX) reported third-quarter 2026 results on November 6, showing higher Net Income even as quarterly revenue moved lower. The Warren, Ohio based company provides waste management services to industrial, commercial, municipal and governmental customers across selected northeastern and midwestern U.S. markets. It also runs captive landfill management services, salt water injection well operations, and Avalon Resorts and Clubs, which operates a hotel, four golf courses and a multipurpose recreation center.

Third-Quarter Revenue and Profit Trends

Net operating revenues for the three months ended September 30, 2026 totaled $24.3 million, compared with $25.7 million in the same period of 2025. Despite the smaller top line, net income attributable to common shareholders increased to $2.7 million, or $0.69 per basic share, from $1.9 million, or $0.49 per share, a year earlier. Operating Income rose to $3.2 million from $2.3 million over the same period.

The mix of revenue shifted during the quarter. Waste management services generated $11.1 million, down from $12.9 million, while the golf and related operations segment produced $13.2 million, up from $12.8 million. Within golf, food, beverage and merchandise sales climbed to $4.8 million from $4.6 million, and other golf and related operations revenue reached $8.4 million compared with $8.3 million. Operating costs in the waste segment fell to $8.4 million from $10.3 million, which offset part of the lower waste revenue and helped lift operating income.

Nine-Month Performance and Cost Structure

For the first nine months of 2026, net operating revenues were $62.9 million, compared with $62.1 million for the same period a year earlier. Net income attributable to common shareholders for the nine-month period was approximately $2.3 million, or $0.60 per basic share, up from $0.7 million, or $0.17 per share. Income before income taxes for the nine months rose to $2.3 million from $0.4 million, reflecting higher operating income in the period.

Selling, general and administrative expenses for the quarter were $2.7 million, slightly below $2.8 million in the prior-year quarter. Interest expense, net, held steady at $0.5 million. Golf and related operations costs for the nine months eased to $18.6 million from $19.4 million, while golf revenue for the same period was $30.1 million compared with $29.7 million. The company also recorded a net loss attributable to a non-controlling interest in a Subsidiary of $70,000 in the quarter, a smaller loss than the $113,000 reported a year earlier.

Balance Sheet and Share Count

As of September 30, 2026, cash and cash equivalents totaled $6.3 million, compared with $4.1 million at December 31, 2025. Restricted cash stood at $7.8 million, and property and equipment, net, was $52.7 million. Total Assets were $88.3 million at the end of the quarter, up from $87.4 million at year-end 2025. Current portion of long-term Debt was $0.6 million, with the balance of the company's debt obligations shown separately in its condensed balance sheet.

Weighted average basic shares outstanding remained at 3.9 million in both the third quarter and the first nine months of both years.

Avalon's Balance Sheet also shows how the company funds its operations, with obligations under finance leases and long-term debt reported separately as current and noncurrent portions. The condensed statements present total liabilities and Equity alongside the asset base, which allows readers to compare the company's funding structure across the two dates.

Avalon's golf and resort operations depend on membership dues, food and beverage sales and merchandise, which together generated $13.2 million in the quarter. Waste management revenue, by contrast, comes from contracts with industrial, commercial and governmental customers, so the two segments respond to different Demand patterns.

Final Word

Avalon's third quarter shows net income rising on lower total revenue, with waste management sales declining and golf and related operations expanding. The nine-month figures show revenue nearly unchanged year over year, alongside a clear improvement in profit.

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