GET DAILY SIGNALSAvalon Holdings (AWX) Reports Improved Q3 Profits Despite Revenue Decline
Key Takeaways
- Avalon Holdings Corporation (AWX) reported third quarter 2026 net income attributable to common shareholders of $2.7 million, up from $1.9 million in the same period a year earlier.
- Basic earnings per share (EPS) rose to $0.69 in the third quarter of 2026, compared with $0.49 in the third quarter of 2025.
- Net operating revenues declined to $24.3 million from $25.7 million a year ago, driven by lower waste management services revenue.
- Improved profitability was supported by a sharp reduction in waste management services operating costs, which fell to $8.4 million from $10.3 million.
- For the first nine months of 2026, net income reached approximately $2.3 million versus $0.7 million in the prior-year period, with basic EPS of $0.60 versus $0.17.
- You can find more information about the company's Major News, Today's Price Move, Price Targets, and Forecast on additional pages.
- For automated, data-driven market ideas, explore Trending AI Robots.
Business Context and Why These Results Stand Out
Avalon Holdings Corporation operates across two distinct segments: waste management services for industrial, commercial, municipal, and governmental customers in selected northeastern and midwestern U.S. markets, and a golf and resort business through its Avalon Resorts and Clubs subsidiary. The company's quarterly results are closely watched because its waste management segment provides more stable, contract-based revenue, while the golf and hospitality operations remain highly seasonal and weather-sensitive. The third quarter is typically a seasonally strong period for golf and resort activity. Investors also monitor the company's cost discipline, debt levels, and the status of its suspended saltwater injection wells, which represent a key uncertainty for the waste segment's longer-term revenue potential. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Numbers
Avalon Holdings reported third quarter 2026 net operating revenues of $24.3 million, a decline from $25.7 million in the third quarter of 2025. Within the total, waste management services revenue fell to $11.1 million from $12.9 million a year earlier, while total golf and related operations revenue rose to $13.2 million from $12.8 million.
Despite the top-line decline, profitability improved notably. Net income attributable to Avalon Holdings common shareholders reached $2.7 million in the third quarter of 2026, compared with $1.9 million in the prior-year quarter. Basic net income per share attributable to common shareholders was $0.69, up from $0.49 a year earlier. The improvement was driven in part by a meaningful reduction in waste management services operating costs, which decreased to $8.4 million from $10.3 million.
For the first nine months of 2026, net operating revenues were $62.9 million versus $62.1 million in the same period of 2025. Net income attributable to common shareholders rose to approximately $2.3 million from $0.7 million, with basic EPS of $0.60 compared with $0.17.
Market Reaction and Investor Sentiment
Avalon Holdings is a thinly traded small-cap stock with a limited public float, so earnings-related price moves can be volatile and may not always reflect the broader market's view of the results. The third quarter report showed a familiar pattern for AWX: modest revenue softness offset by stronger cost control and improved bottom-line performance. The rise in EPS despite lower revenue may reinforce investor focus on the company's expense discipline and the seasonally stronger golf segment. At the same time, the continued decline in waste management services revenue, along with the unresolved status of its suspended saltwater injection wells, remains a concern that can temper enthusiasm around the earnings beat on the bottom line.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will likely track whether Avalon Holdings can sustain its improved profitability into the seasonally slower fourth quarter and early 2027. The company's waste management segment has shown cost improvements, but revenue from this segment declined year over year, making it important to monitor whether contract and project volumes stabilize.
The status of the suspended saltwater injection wells remains a key uncertainty. Following an unfavorable Ohio Supreme Court ruling earlier in 2026, management has said it is evaluating strategic planning for the site, and any resolution could meaningfully affect future waste segment revenue potential.
Investors should also watch the golf and resort business, which tends to perform better in warmer months. Sustaining food, beverage, and merchandise sales and managing operating costs through the off-season will be important for full-year results. Finally, debt levels, liquidity, and compliance with the company's fixed charge coverage ratio covenant under its term loan and line of credit agreements remain important indicators of financial health as the company continues to report a mix of seasonal profits and losses. From what I see, these factors will shape how the story unfolds in the coming quarters.
Integrating AI Tools Into My Research Process
In my analysis of small-cap names like AWX, I often turn to Tickeron’s AI-powered tools to cross-check patterns and signals. The AI Screener helps me quickly filter for relevant technical and fundamental metrics, saving time when reviewing earnings-driven moves. It serves as a practical companion when scanning for ideas in this space.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
AWX's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for AWX moved out of oversold territory on October 06, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 16 similar instances when the indicator left oversold territory. In 15 of the 16 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 06, 2026. You may want to consider a long position or call options on AWX as a result. In 89 of 122 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 73%.
The Moving Average Convergence Divergence (MACD) for AWX just turned positive on October 16, 2026. Looking at past instances where AWX's MACD turned positive, the stock continued to rise in 38 of 52 cases over the following month. The odds of a continued upward trend are 73%.
Following a +3.95% 3-day Advance, the price is estimated to grow further. Considering data from situations where AWX advanced for three days, in 110 of 169 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 40 of 54 cases where AWX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 74%.
AWX moved below its 50-day moving average on November 05, 2026 date and that indicates a change from an upward trend to a downward trend.
The 50-day moving average for AWX moved below the 200-day moving average on November 02, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AWX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.
AWX broke above its upper Bollinger Band on October 19, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for AWX entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 25 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.262) is normal, around the industry mean (47.597). P/E Ratio (8.500) is within average values for comparable stocks, (57.122). AWX's Projected Growth (PEG Ratio) (0.020) is slightly lower than the industry average of (1.132). Dividend Yield (0.000) settles around the average of (0.016) among similar stocks. P/S Ratio (0.117) is also within normal values, averaging (72.867).
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating steady price growth. AWX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 86 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 97 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AWX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock worse than average.
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General Information
a provider of landfills services and golf courses
Industry EnvironmentalServices
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