Second quarter 2026
Filed Aug 10, 2026International Seaways reports record net income of $295 million, record adjusted EBITDA of $345 million and record quarterly free cash flow of $261 million.
Second-quarter shipping revenues, net income, adjusted EBITDA and free cash flow were all described as records, with materially higher year-over-year shipping and TCE revenues across both operating segments. The Company also declared its largest quarterly dividend while reporting approximately $935 million of total liquidity.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Pool revenuesGAAP | $255,525 | – | – |
| Time and bareboat charter revenuesGAAP | $88,629 | – | – |
| Voyage charter revenuesGAAP | $123,133 | – | – |
| Total Shipping RevenuesGAAP | $467,287 | – | – |
| Shipping revenuesGAAP | $467 million | – | – |
| Other operating revenuesGAAP | $2,443 | – | – |
| Net incomeGAAP | $295 million | – | – |
| Diluted earnings per shareGAAP | $5.91 per diluted share | – | – |
| Adjusted net incomenon-GAAP | $295 million | – | – |
| Consolidated TCE revenuesnon-GAAP | $434 million | – | – |
| Adjusted EBITDAnon-GAAP | $345 million | – | – |
| Free cash flownon-GAAP | $261 million | – | – |
| Net loan-to-valuenon-GAAP | approximately 6% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Crude TankersShipping revenues for the Crude Tankers segment were driven by higher average spot earnings of over $64,500 per day and higher average time charter earnings of approximately $75,700 per day, reflecting higher profit-sharing results. | $285 million | – | – |
| Product CarriersThe increase in the second quarter of 2026 was attributable to higher TCE revenues from spot earnings of approximately $42,600 per day compared to the second quarter of 2025. | $182 million | – | – |
third quarter of 2026 and second half of 2028 outlook
- NoteThe remaining two vessels are expected to deliver in the third quarter of 2026.
- NoteThe vessels are expected to be delivered in the second half of 2028 at a contract price of $244 million in aggregate.
- NoteThe Company expects to finance the newbuildings through a combination of long-term financing and available liquidity.
- NoteAs of June 30, 2026, the Company has approximately $73 million in remaining construction costs, all of which is expected to be drawn from the Korean export agency-backed facility in accordance with the delivery schedule.
- NoteUpon delivery, all ten newbuild vessels are expected to trade into our jointly owned, Panamax International Pool.
Capital returns
- In June 2026, the Company paid total dividends of $4.55 per share of common stock.
- The Company paid total dividends of $6.70 per share of common stock for the six months ended June 30, 2026.
- On August 7, 2026, the Company’s Board of Directors declared quarterly dividend of $5.05 per share of common stock.
- The dividends will be paid on September 24, 2026, to shareholders with a record date at the close of business on September 10, 2026.
- The Company currently has $50 million authorized under its share repurchase program, which expires at the end of 2026.
- Declared dividends of $12.61 per share over the last twelve months represent a 21% yield.
- Third consecutive quarter with a payout ratio of at least 85% of adjusted net income.
What drove it
- The increase in net income was primarily driven by higher TCE revenues from spot earnings that increased an average of approximately $51,500 per day across the fleet and higher profit-sharing results on applicable time charters.
- Crude Tankers TCE revenues were $253 million, compared to $99 million for the second quarter of 2025.
- Product Carriers TCE revenues were $181 million, compared to $90 million for the second quarter of 2025.
- During the second quarter, the Company took delivery of Seaways Cristobal, the fourth of six LR1 newbuildings under construction in Korea.
- During the second quarter, the Company entered into an additional time charter agreement for three years on a 2017-built Suezmax with future contracted revenue of approximately $45 million.
Concerns
- The reported operating results were primarily driven by higher spot earnings and applicable time-charter profit-sharing results.
- The Company has approximately $73 million in remaining construction costs for the original six LR1 newbuildings.
- The four additional LR1 vessels have a contract price of $244 million in aggregate and are expected to be financed through a combination of long-term financing and available liquidity.
- The Company currently has $50 million authorized under its share repurchase program, which expires at the end of 2026.
What to watch
- Delivery of the remaining two LR1 newbuildings expected in the third quarter of 2026.
- Delivery of four additional scrubber-fitted, dual-fuel (LNG) ready LR1 vessels expected in the second half of 2028.
- Use of the ECA Credit Facility for approximately $73 million in remaining construction costs.
- Execution of the 13 time charter agreements, which had an average duration of 1.5 years and total future contracted revenues through expiry of approximately $240 million, excluding any applicable profit share.
- Future spot earnings and profit-sharing results, which drove the increase in second-quarter TCE revenues.
Balance sheet and cash flow
- Total liquidity was approximately $935 million as of June 30, 2026, including cash (including short-term investments) of $409 million and $526 million undrawn revolving credit capacity.
- Net loan-to-value was approximately 6% as of June 30, 2026.
- During the second quarter of 2026, the Company drew $43 million under the ECA Credit Facility in connection with the delivery of Seaways Cristobal.
- During the six months ended June 30, 2026, the Company made $13 million in scheduled principal repayments in connection with all of its debt arrangements.
- Record quarterly free cash flow was $261 million.
Analysis
International Seaways reported record second-quarter financial results. Net income was $295 million, or $5.91 per diluted share, compared to $62 million, or $1.25 per diluted share, in the second quarter of 2025. Shipping revenues were $467 million compared to $196 million, while consolidated TCE revenues were $434 million compared to $189 million. Adjusted EBITDA was $345 million compared to $102 million, and quarterly free cash flow was a record $261 million.
The release attributes the earnings increase primarily to higher fleetwide spot earnings, which increased an average of approximately $51,500 per day, and higher profit-sharing on applicable time charters. Crude Tankers shipping revenues were $285 million compared to $104 million, with TCE revenues of $253 million compared to $99 million. Product Carriers shipping revenues were $182 million compared to $92 million, with TCE revenues of $181 million compared to $90 million. This indicates strength across both crude and product tanker operations in the reported period.
Capital allocation remained centered on shareholder distributions and fleet investment. The Company paid total dividends of $4.55 per share in June 2026 and declared a quarterly dividend of $5.05 per share, payable on September 24, 2026. It also retained $50 million of share-repurchase authorization through the end of 2026. The Company contracted four additional LR1 newbuildings for $244 million in aggregate, while the remaining two vessels from the original six-vessel program are expected to deliver in the third quarter of 2026.
Liquidity and leverage provide the stated capacity for both distributions and vessel investment. Total liquidity was approximately $935 million at June 30, 2026, including $409 million of cash, including short-term investments, and $526 million of undrawn revolving credit capacity. Net loan-to-value was approximately 6%. The Company drew $43 million under the ECA Credit Facility during the quarter, has approximately $73 million of remaining construction costs for the original six LR1 vessels, and made $13 million in scheduled principal repayments during the six months ended June 30, 2026.
The filing does not provide conventional revenue, margin, expense, tax-rate, EPS or cash-flow guidance. The principal forward items are the expected third-quarter 2026 delivery of two LR1 vessels, second-half 2028 delivery of four additional LR1 vessels, and expected financing through long-term financing and available liquidity. Investors should focus on spot earnings, time-charter profit sharing, completion of the LR1 program, and execution of contracted future charter revenues of approximately $240 million as of July 1, 2026, excluding applicable profit share.
Management, verbatim
We delivered the highest quarterly net income in our nearly ten-year history, complemented by a record dividend for the second consecutive quarter.
Lois K. Zabrocky, International Seaways President and CEO
The record free cash flow generated in the second quarter exceeded our previous high by nearly $100 million.
Jeff Pribor, the Company’s CFO
Not in the filing
stated, not guessed- Complete Consolidated Statements of Operations were not included in the provided filing text after the line beginning with “Operating”; GAAP operating income, operating expenses, interest expense, income tax expense or benefit, and gross profit or gross margin are not available from the provided text.
- Non-GAAP adjusted earnings per share was not provided.
- Operating cash flow was not provided.
- Total debt and gross debt balance were not provided.
- Cash balance excluding short-term investments was not provided.
- Prior-quarter values and quarter-over-quarter changes for reported operating metrics were not provided.
- Percentage year-over-year changes for reported operating metrics were not provided.
- Prior outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- Conventional forward financial guidance for revenue, gross margin, operating expenses and tax rate was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.