International Seaways (INSW) Q1 2026 earnings summary

Executive summary

• Achieved record net income of $286 million ($5.75 per diluted share) for Q1 2026, with adjusted net income of $194 million ($3.90 per share) and adjusted EBITDA of $244 million, driven by strong spot rates and operational execution.

• Declared a record quarterly dividend of $4.55 per share, increasing payout ratio to 85% of adjusted net income, and returned over $1 billion to shareholders since 2020.

• Surpassed $1.3 billion in shareholder returns with the June dividend and achieved a total shareholder return exceeding 74% year-to-date.

• Sold seven vessels for $216 million as part of ongoing fleet optimization and reinvestment strategy.

• Maintained a strong liquidity position of $918 million, including $377 million in cash and $541 million in undrawn revolver capacity.

Financial highlights

• Shipping revenues rose to $325.5 million from $183.4 million year-over-year; consolidated TCE revenues increased to $317 million from $178 million.

• Adjusted EBITDA reached $244 million for the quarter, up from $91 million in Q1 2025.

• Free cash flow for Q1 was $133 million, with $223 million in net proceeds from vessel sales.

• Ended the quarter with $377 million in cash and $918 million in total liquidity.

• Net loan to value below 7% at quarter-end, with gross debt at $650 million.

Outlook and guidance

• Q2 2026 blended spot TCE is fixed at approximately $102,500 per day on 45% of revenue days.

• Estimated spot break-even for 2026 is below $15,000 per day.

• Management expects continued strong performance, supported by robust market conditions and a healthy balance sheet.

• Three LR1 newbuilds scheduled for delivery by Q3 2026, with $121.7 million in remaining commitments.

• Guidance for 2026 includes slightly higher G&A expenses due to Tankers International consolidation, offset by TI commissions.