International Seaways, Inc.

International Seaways owns tankers that carry crude oil and refined petroleum products. It earns revenue from individual voyages and longer-term vessel charters. Many ships operate in pools that combine vessels and share earnings, leaving results closely tied to shipping rates and the timing of completed voyages.

From rising rates to a larger dividend

Shipping revenue more than doubled from a year earlier in both the second and third quarters of 2026. Third-quarter operating cash flow also more than tripled. Growth was less dramatic against the immediately preceding quarter: shipping revenue rose 3.4%, while adjusted net income slipped 1.2% and operating cash flow declined 9.2%.

Third quarter ended September 30. Dollars in millions, except per-share amounts. Operating cash flow covers the quarter alone.

Measure	2026	2025
Shipping revenue	$483.2	$196.4
Operating income	$351.3	$78.7
Net income	$344.2	$70.5
Diluted EPS	$6.90	$1.42
Adjusted net income	$291.4	$56.9
Adjusted diluted EPS	$5.84	$1.15
Operating cash flow	$243.0	$78.3
Company-defined free cash flow	$234.1	$63.4

Second quarter ended June 30. Dollars in millions, except per-share amounts. Operating cash flow covers the quarter alone.

Measure	2026	2025
Shipping revenue	$467.3	$195.6
Operating income	$301.3	$69.4
Net income	$294.9	$61.6
Diluted EPS	$5.91	$1.25
Adjusted net income	$295.0	$50.4
Adjusted diluted EPS	$5.91	$1.02
Operating cash flow	$267.7	$85.8
Company-defined free cash flow	$260.7	$70.9

Net income, operating income and diluted earnings per share use U.S. accounting rules. Adjusted net income removes asset-disposal gains or losses and, where applicable, gains on previously held investments. The latest quarter's adjustment removes a $52.8 million disposal gain.

The company's free cash flow deducts scheduled loan and sale-leaseback principal payments from operating cash flow but excludes most new-vessel spending. Including all capital spending leaves $158.4 million after those principal payments in the third quarter, compared with $209.0 million in the second quarter. Read our analysis of the dividend and new-ship payments for the cash allocation.

Cash, debt and shareholder payments

At September 30, Seaways held $163.6 million in cash and $290 million in short-term deposits, together up $44.2 million from June. It also had $510.3 million of undrawn revolving credit. Debt, including sale-leaseback financing and after deferred financing costs, rose to $700.0 million from $645.6 million. Separate operating lease liabilities were $6.9 million.

The cash dividend rose from $2.15 a share in March to $4.55 in June and $5.05 in September. The November declaration kept the payout at $5.05, payable December 23 to holders of record December 9. Cash dividends paid in the first nine months totaled $581.9 million.

Seaways also increased its buyback authorization from $50 million to $100 million and extended it through 2028. It made no purchases under the program during the first nine months of 2026.

Fleet investment: completed and still to come

The company completed its original six-vessel product-tanker construction program in the third quarter. The last two deliveries, and about $73 million of associated loan funding, fulfilled the schedule described in its August results.

On November 2, Seaways completed the Bruton acquisition, adding one operating very large crude carrier and three under construction. The new ships are scheduled for November 2026, August 2027 and October 2027. About $279 million of construction payments remained as of October 31, which Seaways says can all be funded through the sale-leaseback agreements it assumed. Bruton's approximately $171 million of debt at that date is separate from Seaways' September balance sheet.

Seaways issued about 1.6 million shares in the initial Bruton share exchanges in October. It expects to issue roughly another 1.1 million shares in the completed merger, with final settlement expected around November 11. Certain smaller Bruton shareholders receive cash.

A separate order for four product tankers, announced before these results, costs $244 million and is scheduled for delivery in the second half of 2028. No construction installments had been paid on those four ships by September 30.

Expectations to check next

The $344.2 million third-quarter net profit met the $340 million to $350 million preliminary range published October 16. Revenue including other operating revenue was $485.4 million, also within the preliminary $480 million to $490 million range.

For the fourth quarter, 53% of expected spot-market revenue days were booked at an average $172,300 per day as of October 28, excluding profit sharing. The eventual full-quarter average will show how the unbooked days and changing vessel mix affect that early snapshot. Cash collection, delivery payments and the timing of the Bruton ships will help show how the larger fleet supports shareholder payouts.