International Seaways Is Printing Cash at a Historic Clip — And Returning Almost All of It

Summary

International Seaways, Inc. (NYSE: INSW), one of the largest tanker companies worldwide, has been generating significant cash flow and returning a substantial portion to its shareholders. The company reported a net income of $128 million for the fourth quarter of 2025, or $2.56 per diluted share, and $309 million for the full year, or $6.23 per diluted share. Adjusted net income for the fourth quarter was $122 million, or $2.45 per diluted share, excluding special items such as gains on vessel sales and debt extinguishment costs. The adjusted EBITDA for the fourth quarter was $175 million, and $475 million for the full year.

International Seaways has been actively optimizing its fleet, including the acquisition of the remaining 50% interest in Tankers International, a leading VLCC pool, and expanding into a new Suezmax pool. The company took delivery of Seaways Gibbs Hill, a 2020-built, scrubber-fitted VLCC, for $119 million in the fourth quarter. In 2025, it sold 10 vessels with an average age of 18 years for net proceeds of approximately $131 million, and in 2026, it has sold or agreed to sell seven vessels with an average age of 17 years for approximately $216 million.

The company declared its largest ever quarterly dividend of $2.15 per share to be paid in March 2026, representing an 87% payout ratio of its fourth quarter adjusted net income. Since 2020, Seaways has returned over $1 billion to shareholders, maintaining a consistent and balanced capital allocation strategy. Additionally, the company has a $50 million share repurchase program in place until the end of 2026.

In 2024, Seaways paid $5.77 per share in combined dividends, reflecting a 12% dividend yield on the average share price over the same period. For the second consecutive year, the company returned over $300 million to shareholders, primarily through dividends, representing a 12% yield on its average market capitalization. The company continues to renew its fleet, aiming for an average age of about 10 years, which it considers the sweet spot for...