Highlights

  • International Seaways shows 225.34% basic EPS growth, a P/E of 7.08 and PEG of -1.32.
  • Second quarter net income was $294,925 thousand, against $61,646 thousand a year earlier.
  • Time charter equivalent revenues were $434.2 million in the second quarter, against $188.8 million.
  • The Board declared a $5.05 per share cash dividend on August 7, 2026.

Growth, P/E and PEG sit side by side at International Seaways (NYSE:INSW), an undervalued growth stock: basic earnings per share grew 225.34% over one year, the trailing twelve-month P/E ratio is 7.08 and the PEG ratio, on an expected basis, is -1.32, with shares trading at USD 112.16 on October 28, 2026, up 0.67%. In its latest disclosures, the crude oil and refined petroleum products tanker operator acquired the remaining capital stock of Tankers (UK) Agencies Limited on January 27, entered a $200.0 million equity distribution agreement on May 11, and declared a cash dividend of $5.05 per share on August 7.

Based in New York, New York, and incorporated in the Marshall Islands, International Seaways provides ocean transportation services for crude oil and refined petroleum products in the International Flag market. It has two reportable segments, Crude Tankers and Product Carriers. At June 30, 2026, its operating fleet consisted of 64 wholly-owned or lease financed vessels aggregating 7.6 million deadweight tons, with four LR1 newbuilds scheduled for delivery between the third quarter of 2026 and the fourth quarter of 2028.

Growth: Second Quarter Earnings, Tanker Rates and Segment Results

Net income was $294,925 thousand in the second quarter of 2026 against $61,646 thousand, and $581,068 thousand for the six months against $111,211 thousand. Basic earnings per share were $5.96 against $1.25, and diluted earnings per share were $5.91 against $1.25. Six-month basic earnings per share were $11.74 against $2.25. Shipping revenues were $467,287 thousand against $195,641 thousand.

Time charter equivalent (TCE) revenues, a non-GAAP measure, were $434.2 million against $188.8 million, up 130%, and $751.4 million for the six months against $367.2 million, up 105%. The company said the quarterly increase reflected a $267.6 million rates-based increase from higher average daily rates, partly offset by a $16.8 million days-based reduction in the MR sector after sales of older vessels.

Crude Tankers TCE revenues were $253,364 thousand against $98,908 thousand, with an average daily TCE rate of $108,927 against $39,627. Product Carriers TCE revenues were $180,823 thousand against $89,914 thousand.

Valuation: P/E of 7.08, PEG of -1.32 and Cash Generation

The P/E ratio of 7.08 is measured on trailing twelve-month earnings, and the PEG ratio of -1.32 on expected growth. Net cash provided by operating activities was $408,740 thousand for the six months against $155,726 thousand. Total equity was $2,265,335 thousand at June 30, 2026. Net debt to capital was 9.4%, against 16.5% at December 31, 2025.

Capital Returns, Liquidity and Fleet Renewal

The Board declared and paid dividends of $2.15 per share on February 25, totaling $106,435 thousand, and $4.55 per share on May 6, totaling $225,319 thousand. The $5.05 dividend declared August 7 is payable September 24, 2026 to stockholders as of September 10. No shares were acquired under the $50 million stock repurchase program in the six months, and no shares have been sold under the new equity distribution agreement.

Total liquidity was $935.1 million at June 30, 2026, made up of $409.4 million of cash and short-term investments and $525.7 million of undrawn revolver capacity. Total debt outstanding was $645.6 million, net of $13.6 million of deferred financing costs. Vessel sales brought net proceeds of $222.4 million, and the company contracted four more LR1 vessels for approximately $244 million, expected for delivery in the second half of 2028.

Disclosed Risks and Outlook: Spot Exposure, Hormuz Disruption and Fleet Plans

The company derived approximately 80% of its TCE revenues in the second quarter from the spot market, and said its revenues are highly sensitive to vessel supply and demand. It described the war in the Middle East that began in late February 2026, attacks on vessels and the effective closure of the Strait of Hormuz as causes of supply disruption and volatility in energy prices and spot charter rates. It said it is unlikely that charter rates will remain at historically high levels, and expects pool voyage expenses to be high in the near term given bunker costs and war risk insurance premiums. To date, it said, these developments have not had a material adverse effect on its operations or cash flow.

General and administrative expenses were $16.6 million against $12.2 million in the second quarter. The company also listed tariffs, potential port fees on vessels tied to China and newbuild delivery risk among its risk factors.

The company gave no numerical earnings guidance. It said its liquidity, 25 unencumbered vessels and debt maturities between 2030 and 2038 position it to support operations over the next twelve months. It plans to continue fleet renewal, incremental debt reduction and returns to shareholders, and the remaining two of six LR1 newbuildings are expected for delivery in the third quarter of 2026.