International Seaways, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. Guidance figures: 2 raised, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net income rose to $286 million: Net income was $286 million, or $5.75 per diluted share, against $50 million, or $1.00 a year earlier. Management attributed the rise to higher TCE revenues from spot earnings and larger vessel-sale gains. Source
• Adjusted EBITDA reached $244 million: Adjusted EBITDA was $244 million, compared with $91 million for the first quarter of 2025. EBITDA before the vessel-sale and equity-interest gains was $336 million. Source
• Crude Tankers revenue reached $191 million: Crude Tankers shipping revenues were $191 million, against $88 million. Crude TCE revenues were $184 million, against $85 million. Source
• Seven older vessels sold for $216 million: Seven vessels averaging 17 years old were sold for about $216 million net of costs, with gains of $88 million recognized in the quarter. Source
• Hormuz disruption is more significant: Management said the Strait of Hormuz situation is more significant than typical geopolitical disruption, because more than 20 million barrels per day cannot be substituted. Source
• Liquidity about $918 million: Total liquidity was about $918 million at March 31, 2026: $377 million cash and $541 million undrawn revolving credit. Net loan-to-value was below 7%. Source
• Over $1 billion returned since 2020: Cumulative returns to shareholders since 2020 reached $1 billion, which management cited as a milestone. Source

“We delivered an excellent first quarter, our strongest since the fourth quarter of 2022, with meaningful contributions from both our crude and product tankers.”

Lois K. Zabrocky, International Seaways President and CEO

Guidance

What changed from last quarter

• Guidance raised: The combined dividend declared for June 2026 is $4.55 per share, up from $2.15 per share paid in March 2026. Source
• Guidance raised: The payout ratio is stated as 85% of adjusted net income plus a discretionary component, described as an increase; the prior release gave 87%. Source
• Guidance kept: Remaining two LR1 deliveries are still expected in the third quarter of 2026; the prior release said four of six were on track for 2026. Source
• New: Tankers International formed a Suezmax pool, which began operations in March 2026. The prior release said the company expected to contribute Suezmax vessels to it. Source

Results and growth drivers

• Net income rose to $286 million: Net income was $286 million, or $5.75 per diluted share, against $50 million, or $1.00 a year earlier. Management attributed the rise to higher TCE revenues from spot earnings and larger vessel-sale gains. Source
• Adjusted net income excludes vessel gains: Adjusted net income, which removes vessel-sale gains and a gain on an equity interest, was $194 million, or $3.90 per diluted share, against $0.80 a year earlier. Source
• Adjusted EBITDA reached $244 million: Adjusted EBITDA was $244 million, compared with $91 million for the first quarter of 2025. EBITDA before the vessel-sale and equity-interest gains was $336 million. Source
• Shipping revenues rose to $325 million: Shipping revenues were $325 million, against $183 million. Consolidated TCE revenues were $317 million, against $178 million. Source

Segments and regions

• Crude Tankers revenue reached $191 million: Crude Tankers shipping revenues were $191 million, against $88 million. Crude TCE revenues were $184 million, against $85 million. Source
• Crude spot and time charter rates rose: Average spot earnings rose by over $41,000 per day and average time charter earnings by about $46,500 per day, reflecting higher profit-sharing results. Source
• Product Carriers revenue reached $134 million: Product Carriers shipping revenues were $134 million, against $95 million. TCE revenues were $133 million, against $94 million, on spot earnings about $21,000 per day higher. Source

“Together, this supported our decision to increase the minimum payout ratio to 85% and include a discretionary component in the dividend for this quarter, reinforcing our commitment to returning capital to shareholders.”

Jeff Pribor, the Company’s CFO

Fleet changes and charter cover

• Seven older vessels sold for $216 million: Seven vessels averaging 17 years old were sold for about $216 million net of costs, with gains of $88 million recognized in the quarter. Source
• Seaways Bonita and Cristobal delivered: Seaways Bonita was delivered in the first quarter and Seaways Cristobal in April, the third and fourth of six LR1 newbuildings. Source
• Suezmax pool began operations in March: Tankers International, which the company wholly owns, formed a Suezmax pool that began operations in March 2026. Source
• Fleet totals 67 vessels: The operating and newbuild fleet at March 31 was 67 vessels: 59 owned and 8 chartered in, including three LR1 newbuilds. Source
• Time charter contracts cover $223 million: Fourteen vessels were on time charters averaging 1.4 years, with contracted revenue of about $223 million excluding profit share. A 2012-built Suezmax charter added about $43 million. Source

Costs and pool fees

• Vessel and admin costs fell: Vessel expenses were $61.0 million, against $67.0 million, and general and administrative costs were $9.3 million, against $13.2 million. Source
• Commercial pool fees per day rose: Commercial pool fees and commissions averaged about $1,185 per day, against $896 a year earlier. The TCE rate tables exclude these fees. Source
• Interest expense fell year on year: Interest expense was $9.0 million, against $11.5 million a year earlier. Net income for the quarter was $286.1 million. Source

“The situation in the Strait of Hormuz, however, is more significant, as the world cannot substitute more than 20 million barrels per day of oil and refined product.”

Lois K. Zabrocky, International Seaways President and CEO

Demand and the Strait of Hormuz

• Hormuz disruption is more significant: Management said the Strait of Hormuz situation is more significant than typical geopolitical disruption, because more than 20 million barrels per day cannot be substituted. Source
• Prolonged disruption would strain markets: Management said excess supply and inventories helped the global economy early in the conflict, but a prolonged disruption would place considerable strain on global markets. Source
• Tanker markets expected to benefit later: Management said tanker markets would still benefit from rebalancing of trade flows and inventory replenishment once conditions normalize. Source
• Revenue days declined year on year: Total revenue days were 5,799, against 6,635. Product Carriers days were 3,322, against 4,183; Crude Tankers days were 2,477, against 2,452. Source

Cash, debt and liquidity

• Liquidity about $918 million: Total liquidity was about $918 million at March 31, 2026: $377 million cash and $541 million undrawn revolving credit. Net loan-to-value was below 7%. Source
• Underlying cash generation cited as highest: Management said underlying cash generation was the highest in company history, excluding working capital movements. Operating cash flow was $141 million, against $70 million. Source
• ECA facility funds LR1 deliveries: Drew $43 million under the ECA Credit Facility for Seaways Bonita in Q1 and another $43 million in April for Seaways Cristobal. Scheduled principal repayments were $6 million. Source

Returns to shareholders

• March dividend paid $2.15 per share: The March 2026 dividend was $2.15 per share, made up of $0.12 regular and $2.03 supplemental, with cash dividends paid of $106 million in the quarter. Source
• Total shareholder return above 74%: Management reported total shareholder return above 74% year to date, counting share price gains and the March dividend. Source
• Over $1 billion returned since 2020: Cumulative returns to shareholders since 2020 reached $1 billion, which management cited as a milestone. Source

Strategy and capital allocation

• Capital allocation kept opportunistic: Management said the company will keep low leverage and significant liquidity while remaining opportunistic across its capital allocation priorities. Source
• Commercial pool model with ownership stakes: The company primarily employs its vessels in commercial pools, most of which it has an ownership interest in, for scale and market access. Source
• Full ownership of Tankers International: The company acquired sole ownership of Tankers International, a VLCC commercial management pool, in late January 2026. Source

Coming up, as management said on 7 May 2026

• Two LR1 deliveries by September: The company expects the remaining two LR1 newbuildings to deliver by September 2026. Source
• June dividend payment: The $4.55 per share combined dividend is scheduled for payment on June 26, 2026, with a record date of June 12, 2026. Source
• ECA draws with each delivery: Further funds from the ECA facility will be drawn as each remaining LR1 vessel is delivered. Source

Figures management reported

Risks management discussed

• External: Management said geopolitical events are a constant in the business and usually create inefficiencies as markets adjust their trading patterns. Source
• Demand: Management said it is focused on operating through market conditions as they evolve, and hopes for a resolution before broader effects on the global economy emerge. Source

Earlier plans management reported on

• Met: Seven vessels were sold for about $216 million net, with $88 million of gains recognized, against the prior release expectation of roughly $80 million. Source
• Met: The Suezmax pool formed by Tankers International began operations in March 2026, as the prior release had planned. Source
• Not stated: Management tied the higher dividend to a continued commitment to returning capital to shareholders; no status is given. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.