Q1 2026 Earnings — Reported May 7, 2026 · Strongest Quarter Since Q4 2022
Revenue +78% to $325.5M · Net Income $286M · Record Dividend $4.55/share
International Seaways delivered a record Q1 2026 — its strongest since Q4 2022 — driven by the Strait of Hormuz closure which sent tanker rates surging. Adjusted EPS of $3.90 crushed the $2.68 consensus by 45.5%. Adjusted EBITDA exploded 168% YoY to $244M. The company declared a combined quarterly dividend of $4.55 per share — more than double the prior record of $2.15 — based on a new 85% payout ratio. Seven vessels sold for $216M, generating $88M in gains. 67-vessel fleet with two new LR1s delivered in Q1. Total shareholder returns surpassed $1 billion since 2020.
Key Metrics — Q1 2026 Actuals (Official 8-K Filing)
Revenue (TCE + Other)
$325.5M
+78% YoY
TCE Revenue
$317M
+78% YoY
GAAP Net Income
$286M
+478% YoY · record
Adj. Net Income
$194M
+168% YoY
Adj. EBITDA
$244M
+168% YoY
Adj. EPS (diluted)
$3.90
vs $0.80 Q1 2025
EPS Beat vs Consensus
+45.5%
$3.90 adj. EPS vs $2.68 est.
Quarterly Dividend
$4.55
Record · 2x prior $2.15 · 85% payout ratio
Total Liquidity
$918M
Net LTV below 7% · strong balance sheet
Vessel Sales Proceeds
$216M
7 older vessels · $88M gain recognized
Beat / Miss Matrix
Beats
Adj. EPSEst. $2.68$3.90 (+45.5%)
RevenueEst. $280.3M$325.5M (+16.1%)
GAAP EPSEst. ~$2.97$5.75 (+94%)
Adj. EBITDA—$244M (+168% YoY)
VLCC spot rate—$86,693/day
Suezmax spot rate—$68,027/day
Concerns
Revenue Days6,635 Q1 20255,799 (−12.6%)
Hormuz Reopening Risk—Rate "saddle" expected on opening
CEO Insider Intent to Sell—25K shares · $2.2M at ~$88
Industry Order Book—~16% of global fleet · supply risk
G&A Expense Increase—Higher post-TI consolidation
Revenue Forecast 3YGrowth expectedEst. −5% p.a. avg (SWS)
P&L Summary — Q1 2026 vs Q1 2025 (Official 8-K)
Select Financial Results — Three Months Ended March 31, 2026
TCE Revenue$317M$178M+78%
Other Revenue (lightering, TI fees)$8.5M$5.4M+57%
Total Revenue$325.5M$183.4M+78%
Vessel Sale Gain$88M—Non-recurring
Adj. EBITDA$244M$91M+168%
Adj. Net Income$194M$50M+288%
Adj. EPS (diluted)$3.90$0.80+388%
GAAP Net Income$286M$50M+472%
GAAP EPS (diluted)$5.75$1.01+469%
Net Profit Margin88%27%+61pp
Total Liquidity (end Q1)$918M—Near $1B
Net Loan-to-Value<7%—Very low leverage
TCE Rate Performance & CEO Quote
Spot TCE Rates — Q1 2026 ($/day)
| Vessel Class | Q1 2026 | Q1 2025 | Change |
|---|
| VLCC | $86,693 | ~$27,000 | +221% |
| Suezmax | $68,027 | ~$28,000 | +143% |
| Aframax/LR2 | Elevated | Lower | +~$30K/day avg |
| MR Product | Strong | Lower | Hormuz-driven |
| Avg. fleet delta | — | — | +~$30K/day |
Fleet & Corporate Actions
Total fleet (end Q1)67 vessels (59 owned, 8 in)
New LR1 deliveriesSeaways Bonita + Cristobal
Remaining LR1 newbuilds2 vessels · Q3 2026 delivery
Remaining construction spend~$122M · ECA funded
Vessels sold7 vessels · avg age 17 yrs
Tankers International (TI)Sole ownership acquired Jan 2026
Unencumbered vessels25 vessels · balance sheet flex
"We delivered an excellent first quarter, our strongest since the fourth quarter of 2022, with meaningful contributions from both our crude and product tankers. Following the highest dividend in our history last quarter, we more than doubled our dividend this quarter to $4.55 per share. We have surpassed $1 billion in total shareholder returns since 2020. Our focus over the past decade on scale, fleet modernization and debt reduction helped position us to deliver these results and return this capital to our shareholders."
Lois K. Zabrocky, President & CEO · Q1 2026 Earnings Call, May 7, 2026
Positives & Concerns
Positives
▲VLCC spot rates of $86,693/day — up approximately +221% YoY — reflect the direct impact of the Strait of Hormuz closure rerouting global crude flows. INSW's crude tanker fleet captured exceptional earnings power across all vessel classes simultaneously.
▲Record quarterly dividend of $4.55 per share — more than double the prior record of $2.15 — reflects both the 85% payout ratio formalization and a discretionary component acknowledging the exceptional operating environment. Management confirmed 85% payout "going forward as a practice."
▲Total liquidity of $918M with net loan-to-value below 7% — one of the strongest balance sheets in the tanker sector. Seven older vessels sold for $216M with $88M in gains allow simultaneous fleet renewal and capital return with no balance sheet stress.
▲Acquisition of sole ownership of Tankers International in January 2026 provides direct commercial control over the VLCC pool — eliminating third-party pool management costs and increasing earnings per vessel across the crude segment.
▲Total shareholder returns exceeded $1 billion since 2020 — with $1.3B expected after the June payment. This return profile at a market cap of ~$4.4B represents exceptional capital discipline relative to peers across the tanker cycle.
Concerns
▼The Strait of Hormuz closure was the primary driver of Q1 rate surges. Management's own commentary on the earnings call noted a "saddle" — a temporary rate dip — expected as the Hormuz situation evolves. Current rate levels are explicitly tied to geopolitical disruption, not structural demand growth.
▼Revenue days declined from 6,635 in Q1 2025 to 5,799 in Q1 2026 — a 12.6% reduction reflecting vessel sales and transition periods. Revenue days will partially recover with LR1 deliveries in Q3, but the fleet is temporarily smaller during the newbuild gap.
▼Industry tanker order book has risen to approximately 16% of the current global fleet — the highest level in years. New vessel deliveries industrywide will add supply from 2026–2028, creating structural rate pressure as the current supply-demand tightness normalizes.
▼CEO Lois Zabrocky filed an Intent to Sell 25,000 shares (~$2.2M at ~$88) in May 2026. While her overall holding increased from 194K to 207K shares since June 2025, insiders collectively sold $56M more than bought over 12 months — a negative insider signal.
▼Simply Wall St revenue forecast projects a −5% annualized decline over the next three years for INSW — reflecting mean-reversion assumptions for tanker rates once Hormuz disruptions resolve and the order book-driven supply increase materializes.
Analyst Coverage — Post Q1 2026
Wall Street Ratings — Post May 7, 2026
| Firm | Rating | Price Target | Action | Note |
|---|
| B. Riley | Buy | $120 | Raised from $90 | Largest PT raise post-Q1; Hormuz + fleet renewal conviction |
| Jefferies (S. Moore) | Buy | $100 | Raised from $90 | "Strong" Q1; rate environment and dividend sustainability |
| InvestingPro | Undervalued | Upside noted | — | P/E 14.35x · +155.6% past year · +82% YTD · near 52wk high $88 |
| Revenue beat (all analysts) | Beat 100% | 2-year streak | — | Beat revenue estimates 100% of time over last 2 years |
| FY2026 EPS consensus | Raised | $8.15 | From $7.14 | Net income forecast +31% YoY · post-Q1 upward revisions |
| Stock performance | +82% YTD | ~$88–90 | +4.12% on Q1 day | +155.6% past 12 months · near 52-week high |
Earnings Verdict
Record Quarter on Hormuz Dislocation — Rate Sustainability the Key Watch
International Seaways delivered the highest quarterly earnings in company history — a 45.5% EPS beat, 168% EBITDA growth, and a $4.55 dividend that more than doubled the prior record. The quarter was the direct beneficiary of the Strait of Hormuz closure, which rerouted global crude flows and pushed VLCC spot rates to $86,693/day and Suezmaxes to $68,027/day — levels that are inherently transitory. Management was explicit on the call about a rate "saddle" expected as the Hormuz situation evolves. The structural pillars remain strong: net LTV below 7%, $918M liquidity, a young and modernizing fleet, sole ownership of Tankers International, and an 85% payout ratio formalized as policy. The risks are rate normalization from Hormuz resolution, an order book at 16% of fleet introducing new supply from 2026–2028, and CEO insider intent to sell. At ~$88 with a P/E of 14.35x and FY2026 EPS consensus of $8.15, the valuation is not demanding — but earnings sustainability post-Hormuz normalization will determine whether Q1 was a peak or a new baseline. Next earnings August 2026.