International Seaways Posts Record Q3 Revenue, Beating Estimates

International Seaways reported Q3 2026 revenue of $483.2 million, beating expectations and marking by far the strongest quarter in the company's recent history. The crude tanker segment drove the gain.

The engine behind that surge was VLCC spot rates averaging $154,597 per day during the quarter, far above year-ago levels, with fixed time charters carrying profit-sharing provisions adding more. CEO Lois K. Zabrocky noted that tanker markets were already strong earlier in the summer but that rates surged to remarkable levels toward the end of the quarter.

Adjusted EPS came in at $5.84, meeting expectations and extending the company's streak of topping analyst expectations to five consecutive quarters. GAAP diluted EPS benefited from a gain on vessel disposals that included the sale of a 2012-built Suezmax, and free cash flow rose sharply from a year ago.

The board maintained the $5.05 quarterly dividend and expanded the share repurchase program to $100 million, extending its expiry through the end of 2028. The pending Bruton Limited acquisition, which adds four scrubber-fitted dual-fuel LNG VLCCs to the fleet, is expected to settle on or about November 11, 2026, with incoming vessels already fixed on charter.

Looking further out, the company has contracted about $305 million in future time charter revenue, excluding profit share. Four LR1 newbuilds are also due in the second half of 2028, to be financed with long-term debt and available liquidity, while shareholders' equity rose and total liabilities fell year over year.