International Seaways, Inc.

What they do

International Seaways owns and operates oceangoing vessels transporting crude oil and petroleum products in the International Flag trade, organized into Crude Tankers and Product Carriers segments. At December 31, 2025, the fleet totaled 70 vessels (8.4 million dwt), including VLCC, Suezmax and Aframax crude tankers and LR2, LR1 and MR product carriers, plus four dual-fuel ready LR1 newbuilds then on order. Vessels are chartered to major oil companies, oil traders, refinery operators and government entities, either on spot voyages through commercial pools or on fixed-rate time and bareboat charters.

Revenue drivers

• Crude Tankers segment — VLCC, Suezmax and Aframax tankers; generated 52% of 2025 TCE revenues ($819.6M total) and $253M of Q2 2026 TCE revenues versus $99M a year earlier.
• Product Carriers segment — LR2, LR1 and MR product carriers; generated 48% of 2025 TCE revenues and $181M of Q2 2026 TCE revenues versus $90M a year earlier.
• Spot voyage charters through pools — Pool-based spot rates are highly volatile; Q2 2026 fleet spot earnings rose roughly $51,500 per day on average, with crude spot above $64,500 per day and product spot at approximately $42,600 per day.
• Time and bareboat charters — Fixed daily rates provide more predictable TCE revenue; in 2025 the company locked in $34.9M of minimum revenues on four new non-cancelable time charters, with $14.6M remaining at year-end 2025.

Recent performance

Q2 2026 net income was a record $295 million, or $5.91 per diluted share, versus $62 million, or $1.25 per share, in Q2 2025. Shipping revenues were $467 million and consolidated TCE revenues $434 million, compared with $196 million and $189 million a year earlier. Adjusted EBITDA was a record $345 million versus $102 million, and free cash flow was a record $261 million. Higher spot earnings (up about $51,500 per day across the fleet) and higher profit-sharing on time charters drove the increase. Full-year 2025 revenue was $843.3 million with net income of $309.3 million, down from $951.6 million and $416.7 million in 2024.

Strategy

Management emphasizes a balanced crude/product fleet, a strengthened balance sheet and lower cash break-even levels to maximize cash generation across market cycles. In 2025 the company sold 12 older vessels for about $246.3 million net proceeds (recognizing $42.5 million of gains), took delivery of two of six dual-fuel ready LR1 newbuilds, and bought a 2020-built scrubber-fitted VLCC for $119.0 million. In 2026 it contracted four additional LR1 newbuilds for an aggregate $244 million, with the ten total newbuilds expected to trade in the jointly owned Panamax International Pool. Capital return is explicit: it targets paying at least 85% of adjusted net income as dividends, a level maintained for three consecutive quarters.

Risks

• Charter rate cyclicality — The industry is highly cyclical, and declines in spot rates or market deterioration could lower revenues, earnings and vessel values.
• Fleet supply growth — An increase in vessel supply, including newbuild deliveries, without a commensurate rise in demand could pressure spot charter rates.
• Geopolitical and trade disruption — Attacks on merchant vessels in the Arabian Gulf, Strait of Hormuz, Red Sea and Gulf of Aden, the Russia-Ukraine war, and trade protectionism including tariffs and potential U.S./China port fees could disrupt operations.
• Capital and counterparty risk — Counterparty credit risk, constraints on capital availability and the company's indebtedness could affect its ability to finance operations or pursue opportunities.

Outlook

Management attributes record results to the platform built over recent years — a stronger balance sheet, lower cash break-even, a balanced crude and product fleet, and an expanded commercial platform — and says these support cash generation across market cycles. The remaining two LR1 newbuilds from the original six-vessel program are expected in Q3 2026, with four additional LR1s delivering in 2028. With roughly $935 million of total liquidity and net loan-to-value near 6% at June 30, 2026, the company says it retains flexibility to invest opportunistically while maintaining disciplined capital allocation and its 85%-of-adjusted-net-income dividend practice.