International Seaways — Third Quarter 2026 Earnings Summary

Financial Performance

• Net income for Q3 2026 was $344 million ($6.90 per diluted share), compared to $71 million ($1.42 per diluted share) in Q3 2025.
• Adjusted net income for Q3 2026 was $291 million ($5.84 per diluted share), compared to $57 million ($1.15 per diluted share) in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $345 million, compared to $108 million in Q3 2025.
• Free cash flow for Q3 2026 was $234 million.
• Shipping revenues for Q3 2026 were $483 million, compared to $196 million in Q3 2025.
• Consolidated TCE revenues for Q3 2026 were $443 million, compared to $192 million in Q3 2025.
• Total liquidity was approximately $964 million as of September 30, 2026, comprising $454 million in cash and short-term investments and $510 million in undrawn revolving credit capacity.
• Net loan-to-value was less than 6% as of September 30, 2026.
• Gross debt outstanding under sale leaseback financing agreements was approximately $170 million as of October 31, 2026.
• Total debt on the balance sheet as of September 30, 2026, was $700 million ($34.6 million current portion + $665.4 million long-term).

Guidance and Future Outlook

• The company expects to complete the settlement of the Bruton transaction consideration on or about November 11, 2026.
• Four additional scrubber-fitted, dual-fuel (LNG) ready LR1 vessels are scheduled for delivery in the second half of 2028.
• The company expects to finance the 2028 LR1 newbuilds through a combination of long-term financing and available liquidity, with no installment payments made as of September 30, 2026.
• Management stated the company is positioned to capture opportunities throughout the cycle and maintain flexibility for future growth.

Business Segments and Product Lines

• Crude Tankers: Shipping revenues were $359 million (vs. $96 million in Q3 2025); TCE revenues were $321 million (vs. $93 million in Q3 2025). Average spot earnings increased to over $78,000 per day, and average time charter earnings reached approximately $274,000 per day.
• Product Carriers: Shipping revenues were $124 million (vs. $100 million in Q3 2025); TCE revenues were $121 million (vs. $99 million in Q3 2025). Spot earnings averaged approximately $12,400 per day.
• Fleet Acquisitions: Acquired Bruton Limited and four newbuilding VLCCs for approximately three million shares and cash. Bruton assets include one 2026-built dual-fuel VLCC on the water and three newbuilds scheduled for delivery in November 2026, August 2027, and October 2027.
• Newbuild Deliveries: Took delivery of two LR1 newbuilds (Seaways Magellan and Seaways Delgada), completing a six-vessel program at an aggregate contract price of approximately $359 million.
• Vessel Sales: Sold a 2012-built Suezmax for $74 million, recognizing a $53 million gain. In the nine months ended September 30, 2026, eight vessels were sold for aggregate proceeds of approximately $290 million, recognizing gains of approximately $141 million.
• Charter Agreements: Entered into two time charter agreements with an average duration of three years. As of October 1, 2026, 11 vessels were on time charter agreements with an average duration of 2.0 years and total future contracted revenues of approximately $305 million.
• VLCC Contracts: The VLCC currently on the water is contracted at $95,000 per day through April 2027. A second VLCC scheduled for November 2026 delivery has a 12-month time charter at $107,000 per day.

Market and Competitive Landscape

• Tanker market rates surged to remarkable levels toward the end of the third quarter 2026.
• Average spot earnings across the fleet increased by approximately $38,300 per day compared to the prior year period.
• All ten newly delivered and ordered LR1 vessels are expected to trade in the Panamax International Pool, which has consistently outperformed the market.
• The company operates a fleet of 69 vessels as of September 30, 2026 (62 owned, 7 chartered in).

Risks and Challenges

• The press release contains forward-looking statements regarding plans to issue dividends, vessel acquisitions, market trends, and strategic alliances, which are subject to change based on various factors.
• Investors are directed to the 2025 Annual Report on Form 10-K for detailed risk factors.

Management Commentary and Tone

• CEO Lois K. Zabrocky highlighted record quarterly net income driven by exceptional market conditions and disciplined capital allocation, noting the company's ability to capitalize on market disruptions.
• CFO Jeff Pribor emphasized strong cash generation providing optionality in capital allocation, citing the Bruton transaction as a demonstration of using shares as currency for growth while maintaining financial resources.
• Management expressed confidence in executing their strategy of optimizing the fleet, maintaining a healthy balance sheet, and returning capital to shareholders.

Other Key Points

• Declared a quarterly dividend of $5.05 per share, matching the previous quarter's record; dividends of $16.80 per share over the last twelve months represent a 22% yield.
• Paid total dividends of $11.75 per share for the nine months ended September 30, 2026.
• The Board increased the share repurchase program to $100 million and extended its expiry to the end of 2028.
• The company has maintained a payout ratio of at least 85% of adjusted net income for four consecutive quarters.
• Drew approximately $73 million under the ECA Credit Facility for the delivery of Seaways Magellan and Seaways Delgada.
• Made $20 million in scheduled principal debt repayments during the nine months ended September 30, 2026.
• Conference call scheduled for November 5, 2026, at 9:00 a.m. Eastern Time.