International Seaways (INSW) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income was $62 million ($1.25 per diluted share), with adjusted net income of $50 million ($1.02 per share) and adjusted EBITDA of $102 million; strong shareholder returns and ongoing fleet optimization initiatives continued.

• Maintained a payout ratio of at least 75% of adjusted net income, declared a $0.77 per share dividend for September, and continued a $50 million share repurchase program.

• Executed sales or agreements to sell six older vessels (average age 17.5 years) for proceeds of $85 million and agreed to purchase a 2020-built VLCC for $119 million, with LR1 newbuildings scheduled for delivery.

• Total liquidity stood at $709 million as of June 30, 2025, supporting ongoing capital allocation and strategic growth.

• The fleet comprised 75 vessels as of June 30, 2025, with six LR1 newbuilds scheduled for delivery through Q3 2026.

Financial highlights

• Q2 2025 adjusted EBITDA was $102 million, with free cash flow of $71 million and total liquidity of $709 million (cash $149 million, $560 million undrawn revolver capacity).

• Shipping revenues for Q2 2025 were $196 million, down from $257 million in Q2 2024; TCE revenues were $189 million, down from $252 million.

• Gross debt stood at $553 million, with net loan-to-value at approximately 14%.

• Paid $0.60 per share dividend in June 2025 and declared $0.77 per share for September.

• Net debt to capital ratio improved to 17.3% from 22.2% at year-end 2024.

Outlook and guidance

• Q3 2025 fixtures are 41% fixed at an average TCE of $27,900 per day; spot break-even rate for the next 12 months is around $13,000 per day.

• FY 2025 revenue guidance is $264–$270 million, with vessel expenses of $68–$74 million and capex (excluding newbuilds) of $11–$13 million.

• Management expects strong balance sheet and liquidity to support operations, fleet renewal, and shareholder returns over the next 12 months.

• Updated guidance for Q3 expenses and 2025 estimates provided for modeling.