International Seaways Q2 Earnings Beat Estimates, Revenues Surge Y/Y

INSW's TCE Revenues Surge on Strong Tanker Rates

Consolidated time charter equivalent (TCE) revenues climbed to $434 million from $189 million a year earlier. The blended average spot rate advanced to approximately $79,000 per day from $27,500 in the prior-year quarter.

Net income reached a record $295 million compared with $61.6 million a year ago. Adjusted EBITDA rose to a record $345 million from $102 million, reflecting the stronger rate environment and profit-sharing income.

International Seaways' Crude Tanker Results Strengthen

Crude Tankers revenues increased to $285 million from $104 million in the year-ago quarter, while segment TCE revenues advanced to $253 million from $99 million. Average spot earnings exceeded $64,500 per day, while average time-charter earnings were approximately $75,700 per day, including higher profit-sharing results.

Spot rates were strong across the crude fleet. VLCC earnings averaged $118,900 per day, Suezmax earnings were $100,500 per day and Aframax earnings reached $69,100 per day. The year-over-year improvement more than offset fewer revenue days stemming partly from vessel sales and increased VLCC off-hire time.

INSW's Product Carrier Revenues Nearly Double

Product Carriers' revenues rose to $182 million from $92 million a year earlier. Segment TCE revenues increased to $181 million from $90 million, supported by average spot earnings of approximately $42,600 per day across the product fleet.

On an asset-class basis, LR1 spot earnings averaged $79,200 per day and MR spot earnings averaged $60,300 per day. The rate-driven gains were partly tempered by fewer MR revenue days following the sale of older vessels as International Seaways continued to renew its fleet.

International Seaways Posts Record Free Cash Flow

Quarterly free cash flow reached a record $261 million, nearly $100 million above the company's previous high. INSW ended June with approximately $935 million in total liquidity, including $409 million of cash and short-term investments and $526 million of undrawn revolving credit capacity.

Total debt was approximately $651 million before deferred financing costs, while net loan-to-value was about 6%. The company declared its largest ever quarterly dividend of $5.05 per share, representing an 85% payout ratio of adjusted net income. The dividend is payable Sept. 24, 2026, to shareholders of record as of Sept. 10, 2026.

INSW Advances Its Fleet Optimization Program

International Seaways contracted four additional scrubber-fitted, dual-fuel-ready LR1 newbuildings for an aggregate $244 million. Delivery is expected in the second half of 2028, with the vessels slated to enter the Panamax International Pool.

The company took delivery of Seaways Cristobal during the second quarter, the fourth vessel in its original six-LR1 program. The remaining two vessels are expected to arrive in the third quarter of 2026. As of July 1, the company had 13 vessels on time charters, with approximately $240 million of contracted revenues through expiry, excluding profit-sharing provisions.

International Seaways Provides Q3 Operating View

As of July 30, 2026, 48% of projected spot revenue days for the third quarter were booked at a blended average rate of approximately $61,000 per day. Booked spot rates included $118,300 per day for VLCCs, $91,800 for Suezmaxes, $48,900 for Aframax/LR2 vessels, $37,200 for LR1s and $34,700 for MRs.

Management expects third-quarter vessel expenses of $61-$66 million, general and administrative expenses of $16-$17 million, interest expense of $11-$12 million and depreciation of $40-$42 million. Capital expenditures, including drydock costs but excluding newbuilding payments, are projected at $13-$16 million for the third quarter and $37-$40 million for the second half of 2026.

The company estimates an all-in forward 12-month spot cash break-even rate of about $14,400 per day. Its high booked rates, low leverage and substantial liquidity position International Seaways to continue fleet renewal, debt reduction and shareholder returns while retaining flexibility for strategic opportunities.

Currently, INSW carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performance of Other Transportation Companies

Delta Air Lines DAL reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability.

Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenues per available seat mile (TRASM) by 12.4%, while premium and diversified revenue streams continued to expand.

United Airlines Holdings, Inc. UAL reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.

J.B. Hunt Transport Services, Inc. JBHT reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.

Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.

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