International Seaways, Inc. (INSW) reported third‑quarter 2025 results that beat consensus estimates, delivering net income of $71 million ($1.42 per diluted share) and adjusted net income of $57 million ($1.15 per diluted share). The adjusted earnings beat the consensus of $0.95 by $0.20, a 21% lift, driven largely by disciplined cost management and a favorable mix of higher‑margin product carrier freight.
Shipping revenue for the quarter reached $196 million, while total company earnings (TCE) revenue stood at $192 million. Both figures exceeded analyst expectations of $186.9 million and $183.3 million, respectively. However, revenue fell 13% from $225 million in Q3 2024. The decline was concentrated in the Crude Tankers segment, where shipping revenue dropped to $96 million from $103 million, largely due to fewer revenue days for VLCCs and lower spot earnings for Suezmax vessels. The Product Carriers segment also contracted, with shipping revenue of $100 million versus $122 million a year earlier.
Adjusted EBITDA for the quarter was $108 million, down from $130 million in Q3 2024, reflecting a modest compression in freight rates. Despite the decline, the company’s EBITDA beat the consensus estimate of $102 million, underscoring effective cost control and operational leverage. The margin compression was offset by the sale of older vessels, which generated $67 million in net proceeds and helped reduce depreciation expense.
Operational highlights included the delivery of the Seaways Alacran, the first of six LR1 newbuildings under construction in Korea, and the sale of five vessels—three MR and two LR1—supporting fleet renewal. The company also completed a $250 million senior unsecured bond issuance maturing in 2030 at a 7.125% coupon and secured a $240 million Export‑Credit Agency (ECA) credit facility, of which $82 million had been drawn to fund the first two newbuildings.
Liquidity remained robust, with total cash and undrawn credit of $985 million as of September 30, 2025. Cash stood at $413 million and undrawn revolving credit capacity at $572 million. The company declared a combined dividend of $0.86 per share, comprising a regular quarterly dividend of $0.12 and a supplemental dividend of $0.74, maintaining a payout ratio of at least 75% of adjusted net income.
CEO Lois K. Zabrocky noted that “market conditions strengthened late in the third quarter and have remained firm, supported by solid fundamentals. These include oil demand growth, constrained fleet growth, and geopolitical factors that create trading inefficiencies.” The comment highlights the company’s confidence in sustaining freight rates and the strategic advantage of a modernized fleet.
Market reaction to the results was muted, with a slight decline in pre‑market trading. Analysts cited the year‑over‑year revenue decline and margin compression as headwinds, while the earnings beat and strong liquidity were viewed as tailwinds. The overall sentiment remained cautiously optimistic, reflecting the company’s solid financial footing amid a challenging market.
Management did not provide new guidance for the remainder of the fiscal year, leaving investors to interpret the results in the context of the company’s ongoing fleet renewal and market positioning.
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