Key Highlights

  • Net income was $344 million, or $6.90 per diluted share, including a $53 million gain on sale.
  • Adjusted Net Income was $291 million, or $5.84 per diluted share.
  • Adjusted EBITDA reached $345 million, and free Cash Flow was $234 million.
  • Spot Earnings rose by about $38,300 per day across the fleet.

International Seaways, Inc. (NYSE:INSW), a provider of crude and product tanker transportation services, reported third-quarter 2026 results. Net income was $344 million, or $6.90 per diluted share, including a $53 million gain on the sale of a vessel. Adjusted net income reached $291 million, or $5.84 per diluted share, and adjusted EBITDA was $345 million. The company reported free cash flow of $234 million for the quarter.

Sector Context

Tanker companies earn Revenue by carrying Crude Oil and refined products on voyages or time charters. Spot market rates move with global oil flows, sanctions, refinery activity and fleet supply, and they can change quickly within a quarter. Companies with contracts that share profits on charters can see additional earnings when market rates are high.

Because tanker fleets are costly and long-lived, owners also track vessel values and the timing of sales, which can produce gains such as the one reported this quarter. These gains are typically treated as non-recurring when assessing operating earnings.

Earnings and Market Rates

Spot earnings increased by an average of about $38,300 per day across the fleet, and higher profit-sharing results on applicable time charters added approximately $75 million. Shipping revenues for the third quarter were $483 million. The release ties the earnings increase directly to these market and contract factors.

The difference between net income of $344 million and adjusted net income of $291 million reflects the $53 million gain on sale and other items, so readers should see the adjusted figure as the better measure of recurring operating earnings for the quarter.

Cash Flow and Shareholder Returns

Free cash flow of $234 million is a clear figure in relation to adjusted EBITDA of $345 million, which indicates that a considerable portion of operating earnings converted into cash in the period. Free cash flow measures cash remaining after Capital spending, and it is the source for dividends, Buybacks and Debt reduction.

The release describes the cash result as high relative to earnings, though the highlights do not state how the cash was allocated. Investors will want to see how the company uses that cash in subsequent periods.

Removing the $53 million gain on sale from reported net income of $344 million produces the $291 million adjusted figure. That reconciliation shows that the reported per-share result of $6.90 includes roughly $1.06 per diluted share from the gain, so the recurring earnings base is closer to $5.84.

Free cash flow of $234 million equals about 80% of adjusted net income and about 68% of adjusted EBITDA. Profit-sharing income of roughly $75 million accounted for about 22% of the $345 million adjusted EBITDA figure, which indicates how much of the quarter depended on contract structures rather than on spot rates alone.

Key Risks

Tanker earnings are highly sensitive to spot rates, which can fall as fleet Supply grows or oil Demand declines. Geopolitical events and sanctions can disrupt trade routes and change rates quickly. Vessel sale gains are irregular and cannot be counted on in future periods.

What to Watch Ahead

Investors will watch whether spot rates and profit-sharing income stay at the third-quarter level and how much of the free cash flow is returned to shareholders. Fleet additions, vessel sales and changes in the contract mix will also shape future earnings.