INSW 10-Q

International Seaways, Inc. (INSW)

10-Q 2026-08-10 For: 2026-06-30

View Original

Added on August 10, 2026


Marshall Islands		98-0467117
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

600 Third Avenue, 39^th Floor, New York, New York		10016
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (no par value)	INSW	New York Stock Exchange
Rights to Purchase Common Stock	N/A	New York Stock Exchange



Large accelerated filer ☒	Accelerated filer ☐	Emerging growth company ☐

Non-accelerated filer ☐	Smaller reporting company ☐


	June 30, 2026		December 31, 2025
ASSETS
Current Assets:
Cash and cash equivalents	$	159,397	$	116,922
Short-term investments		250,000		50,000
Voyage receivables, net of allowance for credit losses of $144 and $52
including unbilled receivables of $244,438 and $169,610		306,658		177,887
Other receivables		28,225		13,836
Inventories		24,915		611
Prepaid expenses and other current assets		14,077		7,790
Total Current Assets		783,272		367,046
Vessels and other property, less accumulated depreciation of $487,867 and $506,585		2,024,244		2,077,986
Vessels construction in progress		51,572		57,725
Deferred drydock expenditures, net		112,678		109,257
Operating lease right-of-use assets		5,360		7,220
Pool working capital deposits		21,843		33,051
Goodwill		7,369		—
Other assets		12,604		16,357
Total Assets	$	3,018,942	$	2,668,642

LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other current liabilities	$	91,231	$	69,921
Current portion of operating lease liabilities		1,334		3,182
Current installments of long-term debt		39,204		25,788
Total Current Liabilities		131,769		98,891
Long-term operating lease liabilities		5,810		5,954
Long-term debt		606,418		541,291
Other liabilities		9,610		2,229
Total Liabilities		753,607		648,365

Commitments and contingencies

Equity:
Capital - 100,000,000 no par value shares authorized; 49,520,476 and 49,404,078
shares issued and outstanding		1,503,556		1,507,325
Retained earnings		773,106		523,792
		2,276,662		2,031,117
Accumulated other comprehensive loss		(11,327)		(10,840)
Total Equity		2,265,335		2,020,277
Total Liabilities and Equity	$	3,018,942	$	2,668,642


	Three Months Ended June 30,				Six Months Ended June 30,
		2026		2025		2026		2025
Shipping Revenues:
Pool revenues, including $123,470, $57,152, $228,634 and $104,357
from affiliated companies	$	255,525	$	148,772	$	504,023	$	286,368
Time charter revenues		88,629		36,729		149,644		72,586
Voyage charter revenues		123,133		10,140		139,096		20,081
		467,287		195,641		792,763		379,035

Other operating revenues		2,443		—		4,343		—

Operating Expenses:
Voyage expenses		33,100		6,819		41,331		11,871
Vessel expenses		63,631		67,421		124,670		134,449
Charter hire expenses		15,186		9,627		22,882		18,772
Depreciation and amortization		39,689		41,349		80,256		81,054
General and administrative		16,604		12,165		25,915		25,382
Other operating expenses		129		122		267		217
Loss/(gain) on disposal of vessels and other assets, net		43		(11,229)		(88,128)		(21,250)
Total operating expenses		168,382		126,274		207,193		250,495
Income from vessel operations		301,348		69,367		589,913		128,540
Holding gain on previously held equity interest		—		—		3,919		—
Operating income		301,348		69,367		593,832		128,540
Other income		4,137		2,040		6,755		3,884
Income before interest expense		305,485		71,407		600,587		132,424
Interest expense		(10,561)		(9,761)		(19,520)		(21,213)
Income before income taxes		294,924		61,646		581,067		111,211
Income tax benefit		1		—		1		—
Net income	$	294,925	$	61,646	$	581,068	$	111,211

Weighted Average Number of Common Shares Outstanding:
Basic		49,487,271		49,323,071		49,474,189		49,315,304
Diluted		49,857,565		49,476,481		49,822,444		49,502,691

Per Share Amounts:
Basic net income per share	$	5.96	$	1.25	$	11.74	$	2.25
Diluted net income per share	$	5.91	$	1.25	$	11.66	$	2.25


					Accumulated
					Other
			Retained		Comprehensive
	Capital		Earnings		Loss		Total
For the six months ended
Balance at January 1, 2026	$	1,507,325	$	523,792	$	(10,840)	$	2,020,277
Net income		—		581,068		—		581,068
Other comprehensive loss		—		—		(487)		(487)
Dividends		—		(331,754)		—		(331,754)
Common stock withheld related to net share settlement of equity awards		(6,796)		—		—		(6,796)
Compensation relating to restricted stock awards		536		—		—		536
Compensation relating to restricted stock units awards		2,491		—		—		2,491
Balance at June 30, 2026	$	1,503,556	$	773,106	$	(11,327)	$	2,265,335

Balance at January 1, 2025	$	1,504,767	$	359,142	$	(7,861)	$	1,856,048
Net income		—		111,211		—		111,211
Other comprehensive loss		—		—		(2,285)		(2,285)
Dividends		—		(64,115)		—		(64,115)
Common stock withheld related to net share settlement of equity awards		(4,870)		—		—		(4,870)
Compensation relating to restricted stock awards		520		—		—		520
Compensation relating to restricted stock units awards		3,270		—		—		3,270
Balance at June 30, 2025	$	1,503,687	$	406,238	$	(10,146)	$	1,899,779

For the three months ended
Balance at April 1, 2026	$	1,501,990	$	703,500	$	(11,215)	$	2,194,275
Net income		—		294,925		—		294,925
Other comprehensive loss		—		—		(112)		(112)
Dividends		—		(225,319)		—		(225,319)
Compensation relating to restricted stock awards		280		—		—		280
Compensation relating to restricted stock units awards		1,286		—		—		1,286
Balance at June 30, 2026	$	1,503,556	$	773,106	$	(11,327)	$	2,265,335

Balance at April 1, 2025	$	1,503,451	$	374,212	$	(8,814)	$	1,868,849
Net income		—		61,646		—		61,646
Other comprehensive loss		—		—		(1,332)		(1,332)
Dividends		—		(29,620)		—		(29,620)
Common stock withheld related to net share settlement of equity awards		(1,608)		—		—		(1,608)
Compensation relating to restricted stock units awards		266		—		—		266
Compensation relating to stock option awards		1,578		—		—		1,578
Balance at June 30, 2025	$	1,503,687	$	406,238	$	(10,146)	$	1,899,779


(Dollars in thousands)		Amounts
Cash paid	$	5,000
Fair value of previously held equity interest		5,000
Total Purchase Consideration		10,000
Fair value of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		507
Other tangible assets		5,786
Other tangible liabilities		(3,917)
Total fair value of identifiable net assets acquired		2,376
Goodwill initially recognized⁽¹⁾⁽²⁾	$	7,624


	Crude		Product
(Dollars in thousands)	Tankers		Carriers		Totals
Three months ended June 30, 2026:
Shipping revenues	$	285,058	$	182,229	$	467,287
Time charter equivalent revenues		253,364		180,823		434,187
Vessel expenses		29,434		34,197		63,631
Charter hire expenses		14,278		908		15,186
Depreciation and amortization		18,497		21,192		39,689
Loss on disposal of vessels and other assets, net		31		12		43
Adjusted income from vessel operations		191,155		124,526		315,681
Adjusted total assets at June 30, 2026		1,398,663		1,189,565		2,588,228

Three months ended June 30, 2025:
Shipping revenues	$	103,799	$	91,842	$	195,641
Time charter equivalent revenues		98,908		89,914		188,822
Vessel expenses		30,015		37,406		67,421
Charter hire expenses		3,673		5,954		9,627
Depreciation and amortization		18,746		22,603		41,349
Loss/(gain) on disposal of vessels and other assets, net		141		(11,370)		(11,229)
Adjusted income from vessel operations		46,474		23,951		70,425
Adjusted total assets at June 30, 2025		1,300,733		1,049,370		2,350,103


(Dollars in thousands)	June 30, 2026		June 30, 2025
Adjusted total assets of all segments	$	2,588,228	$	2,350,103
Corporate unrestricted cash and cash equivalents		159,397		148,807
Short-term investments		250,000		—
Other unallocated amounts		21,317		24,305
Consolidated total assets	$	3,018,942	$	2,523,215


(Dollars in thousands)		Amounts
Balance at December 31, 2025	$	—
Acquisition of TUKA		7,624
Foreign currency translation adjustment		(255)
Balance at June 30, 2026	$	7,369


(Dollars in thousands)			Maximum Exposure to Loss
Other Liabilities	$	–	$	21,843


(Dollars in thousands)		Fair Value		Level 1		Level 2
Previously held equity interest⁽¹⁾	$	5,000	$	—	$	5,000
Identifiable net assets acquired in business combination⁽²⁾		2,376		507		1,869


Declaration Date	Record Date	Payment Date		Total Dividends per Share		Total Dividends Paid (Dollars in Thousands)
February 25, 2026	March 20, 2026	March 30, 2026	$	2.15	$	106,435
May 6, 2026	June 12, 2026	June 26, 2026	$	4.55	$	225,319


(Dollars in thousands)	Unrealized gains on cash flow hedges		Items not yet recognized as a component of net periodic benefit cost		Foreign currency translation adjustment		Total
Balance as of March 31, 2026	$	1,750	$	(12,713)	$	(252)	$	(11,215)
Current period change, excluding amounts reclassified
from accumulated other comprehensive loss		27		—		(3)		24
Amounts reclassified from accumulated other comprehensive loss		(400)		264		—		(136)
Balance as of June 30, 2026	$	1,377	$	(12,449)	$	(255)	$	(11,327)

Balance as of March 31, 2025	$	4,399	$	(13,213)	$	—	$	(8,814)
Current period change, excluding amounts reclassified
from accumulated other comprehensive loss		170		(763)		—		(593)
Amounts reclassified from accumulated other comprehensive loss		(1,003)		264		—		(739)
Balance as of June 30, 2025	$	3,566	$	(13,712)	$	—	$	(10,146)


(Dollars in thousands)	Unrealized losses on cash flow hedges		Items not yet recognized as a component of net periodic benefit cost		Foreign currency translation adjustment		Total
Balance as of December 31, 2025	$	2,093	$	(12,933)	$	—	$	(10,840)
Current period change, excluding amounts reclassified
from accumulated other comprehensive loss		160		(45)		(255)		(140)
Amounts reclassified from accumulated other comprehensive loss		(876)		529		—		(347)
Balance as of June 30, 2026	$	1,377	$	(12,449)	$	(255)	$	(11,327)

Balance as of December 31, 2024	$	5,176	$	(13,037)	$	—	$	(7,861)
Current period change, excluding amounts reclassified
from accumulated other comprehensive loss		(10)		(1,187)		—		(1,197)
Amounts reclassified from accumulated other comprehensive loss		(1,600)		512		—		(1,088)
Balance as of June 30, 2025	$	3,566	$	(13,712)	$	—	$	(10,146)


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)		2026		2025		2026		2025
Numerator:
Net income allocated to:
Common stockholders	$	294,818	$	61,616	$	580,829	$	111,163
Participating securities		107		30		239		48
	$	294,925	$	61,646	$	581,068	$	111,211

Denominator:
Weighted-average common shares outstanding, basic		49,487,271		49,323,071		49,474,189		49,315,304
Dilutive effect of stock options		20,128		77,564		34,911		78,522
Dilutive effect of performance-based restricted stock units		263,787		38,933		218,653		35,768
Dilutive effect of restricted stock units		86,379		36,913		94,691		73,097
Weighted-average common shares outstanding, diluted		49,857,565		49,476,481		49,822,444		49,502,691


(Dollars in thousands)	June 30, 2026		December 31, 2025		Fair Value Level
Cash and cash equivalents	$	159,397	$	116,922		Level 1
Short-term investments		250,000		50,000		Level 1
2030 Bonds		(253,765)		(249,748)		Level 1
ECA Credit Facility⁽¹⁾		(164,665)		(81,494)		Level 2
TISL Borrowing Base Facility⁽¹⁾		(8,500)		—		Level 2
BoComm Lease Financing ⁽²⁾		(159,708)		(174,713)		Level 2
Toshin Lease Financing ⁽²⁾		(8,954)		(10,151)		Level 2
Hyuga Lease Financing ⁽²⁾		(8,617)		(10,164)		Level 2
Kaiyo Lease Financing ⁽²⁾		(7,818)		(9,485)		Level 2
Kaisha Lease Financing ⁽²⁾		(7,812)		(8,921)		Level 2


(Dollars in thousands)	June 30, 2026		December 31, 2025
TISL Borrowing Base Facility	$	8,500	$	—
ECA Credit Facility, due 2038, net of unamortized deferred finance costs of $6,355 and $3,030		158,310		78,464
2030 Bonds, due 2030, net of unamortized deferred finance costs of $4,358 and $4,774		245,642		245,226
BoComm Lease Financing, due 2030, net of unamortized deferred finance costs of $2,388 and $2,731		195,424		202,505
Toshin Lease Financing, due 2031, net of unamortized deferred finance costs of $163 and $189		10,349		11,092
Hyuga Lease Financing, due 2031, net of unamortized deferred finance costs of $134 and $157		10,039		10,808
Kaiyo Lease Financing, due 2030, net of unamortized deferred finance costs of $104 and $126		8,687		9,500
Kaisha Lease Financing, due 2030, net of unamortized deferred finance costs of $107 and $129		8,671		9,484
		645,622		567,079
Less current portion		(39,204)		(25,788)
Long-term portion	$	606,418	$	541,291


(Dollars in thousands)	Voyage receivables - Billed receivables		Contract assets (Unbilled voyage receivables)		Contract assets (Unbilled Commercial Management Fees)		Contract liabilities (Deferred revenues and off hires)
Opening balance as of January 1, 2026	$	2,622	$	—	$	—	$	—
Closing balance as of June 30, 2026		7,165		77		2,405		—


(Dollars in thousands)		Amount
2026	$	658
2027		1,406
2028		1,260
2029		1,185
2030		1,104
Thereafter		2,602
Total lease payments		8,215
less imputed interest		(1,071)
Total operating lease liabilities	$	7,144


(Dollars in thousands)	Amount		Revenue Days
2026	$	57,408	1,729
2027		69,983	1,989
2028		64,672	1,830
2029		41,071	1,261
2030		7,068	228
Future minimum revenues	$	240,203	7,037


(Dollars in millions)	Amount⁽¹⁾
2026	$	57.4
2027		70.0
2028		64.7
2029		41.1
2030		7.0
Future minimum revenues	$	240.2


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands, except daily rate amounts)		2026		2025		2026		2025
TCE revenues	$	253,364	$	98,908	$	437,639	$	183,537
Vessel expenses		(29,434)		(30,015)		(59,831)		(58,433)
Charter hire expenses		(14,278)		(3,673)		(18,773)		(6,509)
Depreciation and amortization		(18,497)		(18,746)		(38,472)		(37,449)
Adjusted income from vessel operations ^(a)	$	191,155	$	46,474	$	320,564	$	81,146
Average daily TCE rate	$	108,927	$	39,627	$	90,105	$	37,093
Average number of owned vessels ^(b)		24.0		19.0		24.8		19.3
Average number of vessels chartered-in		4.1		9.1		3.6		9.0
Number of revenue days ^(c)		2,326		2,496		4,857		4,948
Number of ship-operating days: ^(d)
Owned vessels		2,184		1,729		4,481		3,499
Vessels bareboat chartered-in under leases ^(e)		273		819		543		1,629
Vessels time chartered-in under operating leases ^(f)		91		—		96		—
Vessels spot chartered-in under leases ^(g)		12		5		16		5


	2026				2025
	Spot Earnings		Fixed Earnings		Spot Earnings		Fixed Earnings
Three Months Ended June 30,
VLCC:
Average rate	$	118,883	$	214,216	$	39,303	$	38,809
Revenue days		522		274		644		273
Suezmax:
Average rate	$	100,543	$	37,854	$	36,830	$	33,791
Revenue days		890		273		1,106		53
Aframax:
Average rate	$	69,127	$	38,501	$	30,747	$	38,496
Revenue days		264		91		273		83

Six Months Ended June 30,
VLCC⁽¹⁾:
Average rate	$	100,856	$	172,010	$	36,388	$	38,394
Revenue days		1,215		539		1,302		543
Suezmax:
Average rate	$	83,512	$	37,496	$	33,894	$	31,036
Revenue days		1,869		457		2,194		130
Aframax:
Average rate	$	60,217	$	38,506	$	28,099	$	38,499
Revenue days		530		181		543		172


												Beyond
(Dollars in thousands)		2026		2027		2028		2029		2030		2030		Total
$500 Million Revolving Credit Facility⁽¹⁾	$	1,305	$	2,339	$	2,010	$	1,671	$	125	$	—	$	7,450
$160 Million Revolving Credit Facility⁽¹⁾		442		811		730		161		—		—		2,144
TISL Borrowing Base Facility⁽²⁾		8,741		—		—		—		—		—		8,741
ECA Credit Facility - floating rate⁽³⁾		8,038		15,928		15,600		15,197		14,814		162,300		231,877
2030 Bonds - fixed rate		8,906		17,812		17,812		17,813		267,813		—		330,156
BoComm Lease Financing - fixed rate⁽⁴⁾		11,978		23,761		23,827		23,762		142,272		—		225,600
Toshin Lease Financing - fixed rate⁽⁴⁾		1,080		2,151		2,223		2,052		2,052		2,829		12,387
Hyuga Lease Financing - fixed rate⁽⁴⁾		1,116		2,232		2,160		2,160		2,256		2,000		11,924
Kaiyo Lease Financing - fixed rate⁽⁴⁾		1,292		2,214		2,214		2,214		2,127		—		10,061
Kaisha Lease Financing - fixed rate⁽⁴⁾		1,107		2,214		2,214		2,214		2,287		—		10,036
Operating lease obligations⁽⁵⁾
Office space and vessel equipment		658		1,406		1,260		1,185		1,104		2,602		8,215
Vessel and vessel betterment commitments⁽⁶⁾		85,445		18,240		91,200		—		—		—		194,885
Total	$	130,108	$	89,108	$	161,250	$	68,429	$	434,850	$	169,731	$	1,053,476



1.1		Distribution Agreement dated May 11, 2026 among the Registrant and BTIG, LLC, B. Riley Securities, Inc., Clarksons Securities, Inc. and Fearnleys Securities, Inc. (filed as Exhibit 1.1 to the Registrant’s Current Report on Form 8-K dated May 11, 2026 and incorporated herein by reference).

*10.1		Form of Amendment No. 10 to Lois K. Zabrocky’s Employment Agreement filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated June 8, 2026 and incorporated herein by reference.

*10.2		Form of Amendment No. 8 to Jeffrey D. Pribor’s Employment Agreement filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated June 8, 2026 and incorporated herein by reference.

*10.3		Form of Amendment No. 9 to James D. Small III’s Employment Agreement filed as Exhibit 10.3 to the Registrant’s Current Report on Form 8-K dated June 8, 2026 and incorporated herein by reference.

*10.4		Form of Amendment No. 10 to Adewale O. Oshodi’s Employment Agreement filed as Exhibit 10.4 to the Registrant’s Current Report on Form 8-K dated June 8, 2026 and incorporated herein by reference.

**31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a), as amended.

**31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a), as amended.

**32		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

EX-101.INS		Inline XBRL Instance Document

EX-101.SCH		Inline XBRL Taxonomy Extension Schema

EX-101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase

EX-101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase

EX-101.LAB		Inline XBRL Taxonomy Extension Label Linkbase

EX-101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase

EX-104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)



	INTERNATIONAL SEAWAYS, INC.
	(Registrant)

Date: August 10, 2026	/s/ Lois K. Zabrocky
	Lois K. Zabrocky
	Chief Executive Officer

Date: August 10, 2026	/s/ Jeffrey D. Pribor
	Jeffrey D. Pribor
	Chief Financial Officer