WARREN, OH – August 7, 2026 (STL.News) – Avalon Holdings Corporation (NYSE American: AWX) reported stronger second-quarter 2026 financial results, posting higher revenue and a significant increase in quarterly earnings as growth in its waste management business helped offset mixed performance across its golf and resort operations.
The diversified company, which operates industrial waste management services alongside golf courses, country clubs, and resort properties, generated $20.9 million in second-quarter revenue, up from $20.3 million during the same period last year. Quarterly net income attributable to common shareholders more than tripled to $884,000, or $0.23 per diluted share, compared with $274,000, or $0.07 per share, a year earlier.
The results reflect continued improvement in Avalon’s core environmental services business while demonstrating resilience in its hospitality segment despite a challenging economic backdrop.
Avalon Holdings – Second-Quarter Revenue and Earnings Improve
For the quarter ended June 30, 2026, Avalon reported:
- Net operating revenue: $20.9 million, up 3.2% from $20.3 million.
- Operating income: $1.36 million versus $750,000 last year.
- Income before taxes: $839,000 compared with $240,000.
- Net income attributable to shareholders: $884,000 versus $274,000.
- Basic earnings per share: $0.23 compared with $0.07.
The improvement was driven primarily by higher revenue from the company’s waste management operations, while operating expenses remained relatively well controlled.
Operating income increased by more than 80% year over year, reflecting stronger profitability across the company’s diversified businesses.
Avalon Holdings – Waste Management Continues to Drive Growth
Avalon’s environmental services business remained the company’s largest contributor to revenue.
Waste management revenue increased to $10.1 million during the second quarter from $9.7 million a year earlier, representing approximately a 3.8% increase.
The segment provides:
- Industrial waste management services
- Commercial waste services
- Municipal waste solutions
- Government contracts
- Captive landfill management
- Saltwater injection well operations
Waste management operating costs increased modestly to $7.67 million, allowing the segment to maintain healthy operating margins while supporting higher revenue.
The environmental services division continues to provide Avalon with relatively stable recurring revenue compared with its more seasonal hospitality operations.
Avalon Holdings – Resort and Golf Business Remains Stable
Avalon’s hospitality operations generated $10.8 million in quarterly revenue, slightly above the prior year’s $10.5 million.
Within the segment:
- Food, beverage, and merchandise sales rose to $4.11 million from $3.76 million.
- Golf and related operations revenue declined slightly to $6.67 million from $6.75 million.
Operating expenses within the golf division declined year over year, helping improve overall profitability despite relatively flat revenue.
Avalon owns and operates Avalon Resorts and Clubs, which includes:
- A full-service hotel
- Four championship golf courses
- Country clubs
- Dining facilities
- A multi-purpose recreation center
These businesses provide diversification beyond the company’s environmental services operations while exposing Avalon to seasonal and discretionary consumer spending trends.
Avalon Holdings – First-Half Results Show Continued Recovery
Although Avalon remained slightly unprofitable during the first six months of 2026, results improved substantially compared with the same period last year.
For the first half of 2026:
- Revenue increased to $38.6 million from $36.3 million.
- Net loss attributable to shareholders narrowed to $351,000 from $1.23 million.
- Basic loss per share improved to $0.09 from $0.31.
Operating income for the six months totaled $622,000, compared with an operating loss of $401,000 during the first half of 2025.
The figures suggest Avalon has made meaningful progress toward restoring profitability after a weaker start to the previous year.
Avalon Holdings – Balance Sheet Remains Stable
Avalon ended the quarter with $4.8 million in cash and cash equivalents, up from $4.1 million at the end of 2025.
Other financial highlights included:
- Total assets of $87.6 million.
- Accounts receivable increased to $10.2 million.
- Property and equipment totaled approximately $53.1 million.
- Restricted cash stood at $8.2 million.
- Total shareholders’ equity measured $36.5 million.
Long-term debt declined slightly to $27.7 million, while the company maintained a $3.2 million balance on its line of credit.
Deferred membership revenue increased significantly to $5.8 million, potentially reflecting stronger bookings or membership collections within the resort business.
Stock Performance
Avalon Holdings remains a micro-cap company with relatively low daily trading volume, which can result in higher share-price volatility than larger publicly traded companies.
During 2026, AWX shares have traded in a relatively broad range as investors weighed improving profitability against the company’s modest revenue growth and thin trading activity. The stock has remained well below its historical highs but has shown renewed investor interest following improving quarterly operating results.
Because of its limited public float, Avalon can experience significant price movements on relatively small trading volumes.
Technical Analysis of Avalon Holdings Stock
The technical picture for Avalon Holdings remains mixed.
- Current price: Approximately $3–4 per share.
- 52-week range: Roughly $2.50 to $4.75.
- 50-day moving average: Shares are trading near the 50-day moving average, indicating neutral short-term momentum.
- 200-day moving average: The stock remains slightly below the 200-day moving average, suggesting the longer-term trend is still recovering.
- Relative Strength Index (RSI): Around 50, indicating balanced buying and selling pressure.
- MACD: Momentum has improved in recent weeks, although a sustained bullish trend has yet to be confirmed.
Given the stock’s relatively light trading volume, technical indicators should be interpreted cautiously, as even modest buying or selling activity can produce outsized price movements.
Outlook for Avalon Holdings
Avalon Holdings enters the second half of 2026 with improving operating momentum. Its environmental services division continues to provide stable revenue growth, while cost controls have helped strengthen profitability across the business.
Management will likely focus on maintaining growth in its waste management operations while maximizing profitability within its golf and resort portfolio. Continued improvement in industrial demand and steady membership activity at Avalon Resorts could further support financial performance during the remainder of the year.
Although the company remains relatively small compared with larger environmental services providers, the second-quarter results demonstrate meaningful progress toward sustained profitability.
Investment Disclaimer
This article is provided for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult a licensed financial advisor before making any investment decisions.
