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International Seaways Inc (INSW)
NYSE:INSW
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International Seaways
(NYSE:INSW)
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Rating:69Neutral
Price Target:
$79.00
â–²(4.59% Upside)
Action:DowngradedDate:02/27/26
The score is anchored by strong balance-sheet positioning and a very positive earnings-call outlook on cash generation and shareholder returns. These positives are tempered by a concerning TTM deterioration in revenue/margins/free cash flow and by technically overbought conditions that elevate near-term pullback risk.
Positive Factors
Delevered balance sheet
Extremely low reported debt-to-equity (~0.02) and positive ROE (~11%) point to durable solvency and capital flexibility. Coupled with low cost of debt (<6%) and net loan-to-value near 13%, the company can fund capex, complete newbuilds, and sustain distributions without immediate refinancing stress.
Fleet renewal & consolidation
Taking full control of Tankers International, selling older tonnage and finishing newbuild deliveries materially improves fleet quality and operational mix. More modern, unencumbered vessels and pool scale enhance commercial leverage, lower operating cost per voyage, and sustain competitive positioning over coming quarters.
Strong booked TCEs & low breakeven
High booked TCEs on most of Q1 revenue and a low indicated spot cash breakeven (<$15k/day) provide a durable cash-flow cushion if rates remain supportive. This structural margin between contracted/expected revenue and breakeven underpins near-term free cash generation and continued shareholder returns.
Negative Factors
TTM revenue & margin deterioration
A large trailing‑12‑month revenue decline (≈-73.8%) with negative gross margins signals weakening underlying demand or rate environment. If this trend persists, it undermines earnings durability, compresses operating leverage benefits from fleet quality, and could force reliance on asset disposals or lower distributions.
Free cash flow deterioration
A swing to deeply negative TTM free cash flow (-$272.5M) is a material structural risk: sustained negative FCF reduces reinvestment capacity, raises funding needs, and strains the payout policy. Even with strong liquidity, persistent negative FCF would pressure capital allocation and could increase leverage or asset sales.
Structural cost & cash pressures
A $261M quarter cash decline driven by deliveries, sale-leaseback repayment and purchases, plus elevated vessel stores/spares timing and higher G&A from consolidation, raises structural expense and cash volatility. These raise the breakeven on operations and reduce margin resilience if rate strength eases.
International Seaways (INSW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.73B
Dividend Yield6.12%
Average Volume (3M)473.93K
Price to Earnings (P/E)12.1
Beta (1Y)0.72
Revenue Growth-23.59%
EPS Growth-57.70%
CountryUS
Employees2,899
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)2.45
Shares Outstanding49,427,544
10 Day Avg. Volume477,948
30 Day Avg. Volume473,927
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)1.19
Price to Sales (P/S)11.89
P/FCF Ratio0.00
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue18.11
Enterprise Value/Gross Profit-30.01
Enterprise Value/Ebitda4.44
Forecast
1Y Price Target
$74.67Price Target Upside-1.14% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)6.85
Revenue Forecast (FY)$854.85M
International Seaways Business Overview & Revenue Model
Company DescriptionInternational Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. It operates in two segments, Crude Tankers and Product Carriers. As of December 31, 2021, the company owned and operated a fleet of 83 vessels, which include 12 chartered-in vessels, as well as had ownership interests in two floating storage and offloading service vessels. It serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in October 2016. International Seaways, Inc. was incorporated in 1999 and is headquartered in New York, New York.
How the Company Makes MoneyInternational Seaways generates revenue primarily through the transportation of crude oil and petroleum products on its fleet of tankers. The company operates under different revenue models, including time charters, spot market contracts, and bareboat charters. In a time charter arrangement, the company leases its vessels to customers for a specified period, ensuring a steady income stream. Spot market contracts allow the company to capitalize on fluctuating market rates, potentially leading to higher revenues during periods of increased demand. Additionally, partnerships with major oil companies and trading houses enhance its market presence and provide access to lucrative shipping contracts. The company's revenue is influenced by various factors, including global oil demand, shipping rates, and operational efficiency.
International Seaways Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call communicated a strongly positive operating and financial performance for Q4 and a confident outlook into early 2026: record dividend, robust adjusted EBITDA ($175M), significant free cash flow ($135M), low spot breakeven (~$14.8k/day), large liquidity cushion (~$724M), and active fleet renewal and disposals that improve fleet quality. Management emphasized shareholder returns (over $1B returned since 2020 and >25% 10-year CAGR) and balance sheet strength (net LTV ~13%, cost of debt <6%). The primary negatives were higher-than-expected Q4 vessel expenses, a quarter-over-quarter cash decline of $261M driven by strategic transactions, modestly higher G&A from consolidation, and macro/geopolitical and supply-side uncertainties that could introduce volatility if spot rates soften. On balance, the positives substantially outweigh the lowlights given current market tailwinds, financial flexibility, and demonstrated capital allocation discipline.Q4-2025 Updates
Positive Updates
Strong Q4 Profitability and Adjusted EBITDA
Net income of $128 million ($2.56 per diluted share) in Q4; adjusted net income of $122 million ($2.45 per diluted share). Adjusted EBITDA of $175 million for the quarter.
Largest Ever Quarterly Dividend and Consistent Payouts
Declared a combined record quarterly dividend of $2.15 per share (to be paid in March), representing an 87% payout ratio of Q4 adjusted net income and marking six consecutive quarters with a payout ratio of at least 75%. Management noted this dividend equates to an annualized yield of over 12%.
Robust Liquidity and Delevered Balance Sheet
Total liquidity of approximately $724 million (about $167–170 million cash and ~$557–560 million undrawn revolver capacity). Gross debt of $578 million, net loan-to-value approximately 13% (below 13% stated), net debt under $400 million, and debt 100% fixed or hedged with cost of debt below 6%.
Fleet Renewal, Disposals and Strategic Acquisitions
Acquired remaining 50% of Tankers International and expanded with a Suezmax platform. Took delivery of Seaways Gibbs Hill (2020-built scrubber-fitted VLCC) for $119 million after disposing of 10 older vessels for $131 million; sold another seven older vessels for $216 million in early 2026. Newbuild program nearly complete with 4 LR1s delivering in 2026 and fully financed, requiring only ~$30 million of Seaways cash.
Attractive Booked TCEs and Low Spot Breakeven
Blended average spot TCE of about $50,900 per day on 71% of Q1 expected revenue (booked-to-date). Spot cash breakeven guidance for 2026 approximately $14,800 per day (management repeatedly cited < $15,000/day).
Material Free Cash Flow Generation
Defined free cash flow of approximately $135 million in Q4 after adjusted EBITDA, debt service and capex/drydocks; management emphasized ability to continue generating significant free cash flow in Q1 based on current book-to-date TCEs.
Strong Long-Term Shareholder Returns & Asset Revaluation
Management highlighted over $1 billion returned to shareholders since 2020 and a 10-year compounded total shareholder return in excess of 25% annually. Vessels invested at ~$2 billion cost are currently valued at about $3 billion (implying ~+50% valuation uplift).
Commercial Upside via Profit-Share Contracts
Three VLCCs on contract to Shell include a profit-share structure (50/50 above base rate) with no cap on upside, providing leverage to strong spot markets.
Negative Updates
Higher-Than-Expected Vessel Expenses in Q4
Fourth quarter vessel expenses exceeded guidance due to timing of stores and spares at year-end, creating a drag on operating results despite strong top-line performance.
Quarterly Cash Decline and Cash Position
Net decrease in cash of $261 million during the quarter, ending cash around $167 million. Decline driven by fleet purchases (Seaways Gibbs Hill), repayment of sale-leasebacks (~$258 million), and other capital allocation activities, though liquidity remained robust (~$724 million).
Rising G&A from Consolidation and Expense Guidance Increase
Management added a few million dollars per quarter to projected G&A in 2026 tied to consolidating Tankers International; although offset by TI commission revenue, this increases ongoing operating expenses.
Macro & Geopolitical Risks and Near-Term Supply Uncertainty
EIA and IEA forecast supply to exceed demand in 2026 (potential oversupply), while geopolitical tensions (U.S.-Iran, Russia-Ukraine, Venezuela) and a large volume of sanctioned barrels on the water create uncertainty and market volatility despite current backwardation. Sanctions/enforcement dynamics both support compliant tonnage and add risk.
Reliance on Elevated Spot Market for Near-Term Cash Generation
A meaningful portion (~29%) of Q1 expected revenue remains unbooked and exposure to spot market strength is material to near-term free cash flow; if elevated rates ease, cash generation and high payout ratios could be pressured.
Company Guidance
Management's guidance emphasized strong near-term cash generation: book-to-date first‑quarter spot fixtures average a blended TCE of about $50,900/day on 71% of expected Q1 revenue, and management expects a 2026 spot cash breakeven of roughly $14,800/day (repeated as <$15,000/day), implying significant Q1 free cash flow; Q4 adjusted EBITDA was $175M and adjusted net income $122M ($2.45/sh) with Q4 free cash flow ≈ $135M. Balance sheet and capital allocation metrics highlighted: total liquidity ≈ $724M (ending cash ≈ $167M + $557M undrawn revolvers), gross debt $578M, net debt < $400M, net loan‑to‑value ≈ 13%, cost of debt <6%, 31 unencumbered vessels, only ~$30M cash required to take delivery of remaining LR1s, a $2.15/share dividend (87% payout of Q4 adjusted net income) and a $50M repurchase program through 2026.International Seaways Financial Statement Overview
Summary
Balance sheet strength is a major positive (very low debt-to-equity and solid ROE), and 2022–2024 profitability/cash generation were strong. Offsetting that, the TTM picture shows a sharp revenue contraction, negative gross margin, and deeply negative free cash flow, which raises near-term durability and funding/volatility risk.Income Statement
Profitability was very strong in 2022–2024, with high net margins and solid earnings power, following losses in 2021. However, TTM (Trailing-Twelve-Months) shows a sharp revenue contraction (-73.83%) and negative gross margin, creating a clear durability concern despite still-positive net income.58
Neutral
Balance Sheet
The balance sheet has improved materially versus 2021–2023 as leverage came down; TTM (Trailing-Twelve-Months) debt-to-equity is very low (~0.02) alongside a positive return on equity (~11%). The main watch item is that returns have cooled from 2023–2024 highs, but overall capitalization and solvency appear strong.82
Very Positive
Cash Flow
Cash generation was strong in 2022–2024 with positive operating cash flow and free cash flow, supporting earnings quality. TTM (Trailing-Twelve-Months) is a major setback: operating cash flow is reported at 0 and free cash flow is deeply negative (-$272.5M), indicating a sharp deterioration versus prior years and raising funding/volatility risk if it persists.34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 201.52M | 951.61M | 1.07B | 864.66M | 272.55M |
| Gross Profit | -121.58M | 478.16M | 627.54M | 470.52M | -37.80M |
| EBITDA | 823.99M | 614.78M | 755.12M | 556.09M | -9.57M |
| Net Income | 309.26M | 416.72M | 556.45M | 387.89M | -133.49M |
Balance Sheet | |||||
| Total Assets | 2.67B | 2.64B | 2.52B | 2.62B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 166.92M | 157.51M | 186.76M | 323.74M | 97.88M |
| Total Debt | 34.92M | 711.74M | 744.53M | 1.07B | 1.13B |
| Total Liabilities | 648.37M | 780.35M | 805.06M | 1.13B | 1.18B |
| Stockholders Equity | 2.02B | 1.86B | 1.72B | 1.49B | 1.17B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 261.96M | 481.77M | 171.12M | -155.21M |
| Operating Cash Flow | 0.00 | 547.14M | 688.40M | 287.80M | -76.19M |
| Investing Cash Flow | 0.00 | -155.02M | -124.27M | 42.80M | 133.29M |
| Financing Cash Flow | 0.00 | -361.38M | -681.12M | -185.79M | -173.84M |
International Seaways Technical Analysis
Positive
75.53
Price Trends
57.35
Positive
53.23
Positive
46.74
Positive
Market Momentum
4.17
Negative
85.26
Negative
95.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSW, the sentiment is Positive. The current price of 75.53 is above the 20-day moving average (MA) of 64.45, above the 50-day MA of 57.35, and above the 200-day MA of 46.74, indicating a bullish trend. The MACD of 4.17 indicates Negative momentum. The RSI at 85.26 is Negative, neither overbought nor oversold. The STOCH value of 95.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INSW.
International Seaways Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.09B | 10.69 | 11.35% | 3.19% | -35.37% | -57.86% | |
81 Outperform | $2.70B | 7.75 | 18.48% | 3.72% | -20.11% | -26.44% | |
76 Outperform | $1.58B | 13.06 | 11.21% | 13.08% | -27.21% | -62.22% | |
74 Outperform | $3.13B | 14.84 | 19.44% | 6.12% | -16.45% | 23.94% | |
69 Neutral | $3.73B | 12.11 | 15.96% | 6.12% | -23.59% | -57.70% | |
68 Neutral | $8.45B | 22.29 | 15.63% | 4.32% | -13.41% | -60.18% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
INSW
International Seaways
75.53
44.83
146.00%
DHT
DHT Holdings
19.49
9.57
96.47%
FRO
Frontline
37.95
22.47
145.09%
STNG
Scorpio Tankers
79.08
41.12
108.30%
TNK
Teekay Tankers
78.27
42.03
115.96%
LPG
Dorian LPG
36.99
18.78
103.14%
International Seaways Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
International Seaways Posts Strong Q4 Results, Boosts Dividend
Positive
Feb 26, 2026
On February 26, 2026, International Seaways reported fourth-quarter 2025 net income of $128 million and full-year 2025 net income of $309 million, supported by higher spot earnings across both crude and product segments and fleet optimization that reduced costs and generated gains on vessel sales. Adjusted EBITDA reached $175 million for the quarter and $475 million for the year, while strong tanker markets and disciplined capital allocation allowed the company to declare its largest-ever quarterly dividend of $2.15 per share for March 30, 2026, bringing cumulative shareholder returns since 2020 to more than $1 billion.
The company advanced a fleet renewal and optimization program in 2025 and early 2026, including acquiring full ownership of Tankers International, taking delivery of a modern scrubber-fitted VLCC, selling older vessels, and progressing LR1 newbuild deliveries. These moves, combined with a robust liquidity position of $724 million, a low net loan-to-value ratio of about 13% and 31 unencumbered vessels, leave International Seaways well positioned to convert favorable tanker fundamentals and geopolitical-driven trade dislocations into sustained cash flow and continued shareholder distributions.
The most recent analyst rating on (INSW) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on International Seaways stock, see the INSW Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
International Seaways Accelerates Fleet Renewal With Vessel Sales
Positive
Jan 29, 2026
On January 29, 2026, International Seaways announced that since the start of the year it has sold or agreed to sell five of its oldest vessels—three medium-range (MR) tankers with an average age of 18 years and two very large crude carriers (VLCCs) averaging 15 years—for total proceeds of about $185 million, net of commissions and fees. The transactions, expected to close in the first quarter of 2026, are projected to generate roughly $65 million in gains on sale, signaling an active fleet renewal and capital-recycling strategy that could enhance the company’s operational efficiency and balance sheet while potentially sharpening its competitive positioning in the global tanker market.
The most recent analyst rating on (INSW) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on International Seaways stock, see the INSW Stock Forecast page.
Business Operations and StrategyM&A Transactions
International Seaways Takes Full Control of Tankers International
Positive
Jan 27, 2026
On January 27, 2026, a wholly owned subsidiary of International Seaways, Inc. acquired sole ownership of Tankers International, consolidating control over a major VLCC shipping pool and deepening a relationship that has spanned more than 25 years. On the same day, Tankers International launched a new Suezmax pool, into which International Seaways will place its spot trading Suezmax tankers, expanding the platform beyond VLCCs to provide charterers and partners with a broader range of assets, greater operational flexibility and more diversified crude transportation options; this move is intended to enhance earnings potential and decision-making for pool members by leveraging scale, data and expertise across both VLCC and Suezmax fleets, reinforcing International Seaways’ and Tankers International’s positioning in a dynamic crude shipping market.
The most recent analyst rating on (INSW) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on International Seaways stock, see the INSW Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.