International Seaways posted record second-quarter 2026 results, with net income rising to $295 million from $62 million a year earlier, or $5.91 per diluted share versus $1.25. Adjusted EBITDA climbed to a record $345 million from $102 million, while quarterly free cash flow hit a record $261 million, nearly $100 million above the company’s prior high.
Revenue surged across the business. Shipping revenues jumped to $467 million from $196 million in the second quarter of 2025, and consolidated TCE revenues increased to $434 million from $189 million. The gains were driven by stronger spot earnings, which averaged about $51,500 per day across the fleet, plus higher profit-sharing on applicable time charters.
The crude tanker segment was the biggest contributor to the improvement. Segment shipping revenues rose to $285 million from $104 million, while TCE revenues increased to $253 million from $99 million. Average spot earnings in the crude fleet topped $64,500 per day, and average time charter earnings were about $75,700 per day.
Product carriers also posted a sharp increase. Segment shipping revenues climbed to $182 million from $92 million, and TCE revenues rose to $181 million from $90 million. Spot earnings in the product fleet averaged about $42,600 per day, up from the prior-year quarter.
Cash returned to shareholders accelerated as well. The board declared a quarterly dividend of $5.05 per share, the largest in company history, up from the $4.55 per share paid in June. Over the last 12 months, the company declared $12.61 per share in dividends. For the first half of 2026, total dividends paid came to $6.70 per share.
The balance sheet remained liquid, with total liquidity of about $935 million at June 30, 2026, including $409 million of cash and short-term investments and $526 million of undrawn revolving credit capacity. Net loan-to-value was about 6%.
On the fleet side, International Seaways contracted four additional LR1 newbuildings for $244 million in aggregate, with delivery expected in 2028. Those vessels follow the original six-vessel LR1 program, of which the fourth vessel was delivered during the quarter and the final two are due in the third quarter. The six original LR1 vessels carry an aggregate contract price of about $359 million, with roughly $73 million in remaining construction costs still to be drawn.
The company also sold seven vessels in the first quarter for about $216 million net of costs and recognized gains of about $88 million. In addition, it added a three-year charter on a 2017-built Suezmax, bringing future contracted revenue from that deal to about $45 million. As of July 1, the company had 13 vessels on time charters with average duration of 1.5 years and total future contracted revenue of roughly $240 million, excluding profit share.
Debt activity included a $43 million draw on the ECA credit facility during the quarter tied to the delivery of Seaways Cristobal, and $13 million of scheduled principal repayments during the first half of 2026. Following these announcements, the company's shares moved 0.07%, and are now trading at a price of $92.47. For more information, read the company's full 8-K submission here.
