Avalon Holdings Reports Mixed Q3 Results with Revenue Growth but Declining Net Income

Avalon Holdings Corporation reported its financial results for the third quarter and the first nine months of 2025, revealing a mixed performance across its business segments. For the three months ended September 30, 2025, the company achieved net operating revenues of $25.7 million, a 6.3% increase from $24.2 million in the same period of 2024. The waste management services segment contributed approximately $12.9 million, up from $11.5 million, primarily due to increased event work projects. However, the golf and related operations segment remained stable, generating $12.8 million in both periods.

Despite the revenue growth in the third quarter, Avalon experienced a decline in net income for the first nine months of 2025, reporting $0.7 million, or $0.17 per share, compared to $1.8 million, or $0.47 per share, in the same period of 2024. The decrease in profitability was attributed to lower revenues in the waste management services segment, which fell to $32.3 million from $36.2 million, driven by reduced event work and continuous projects. The golf and related operations segment also saw a slight decline in revenues, from $30.0 million to $29.7 million, due to decreased membership dues and business activity.

Avalon’s operational costs reflected the revenue trends, with total costs for the waste management services segment decreasing to $25.3 million in the first nine months of 2025 from $28.4 million in the previous year. Conversely, costs for the golf and related operations segment increased to $24.1 million, primarily due to rising utility and operating expenses. The company’s selling, general, and administrative expenses remained relatively stable, totaling approximately $7.8 million for the first nine months of both years.

In terms of strategic developments, Avalon continues to focus on enhancing its waste management services through improved sales and marketing efforts, aiming to retain existing customers and attract new business. The company is also exploring potential acquisitions of struggling private country clubs in northeast Ohio to bolster its golf and related operations. As of September 30, 2025, Avalon reported total assets of $90.7 million, an increase from $86.2 million at the end of 2024, driven by higher cash and accounts receivable.

Looking ahead, Avalon remains optimistic about its growth prospects, particularly in the waste management sector, where it plans to leverage its relationships with disposal facilities to provide flexible solutions for customers. However, the company acknowledges potential challenges, including economic conditions that could impact consumer spending and operational costs. Avalon is committed to managing its resources effectively to navigate these uncertainties while pursuing its strategic objectives.