International Seaways 2025 Q2 Earnings Net Income Drops 57.4% Amid Revenue Decline

International Seaways reported Q2 2025 earnings that fell below the prior year’s figures, driven by a 57.4% year-over-year decline in net income and a 24% drop in revenue. The company’s results reflect ongoing industry pressures, though management remains cautiously optimistic about long-term demand and fleet renewal.

Revenue
Total revenue for International Seaways fell by 24.0% to $195.64 million in Q2 2025, compared to $257.41 million in Q2 2024. The decline was observed across both core segments. The Crude Tankers segment reported $103.80 million in revenue, a notable decrease from $125 million a year ago. Meanwhile, the Product Carriers segment earned $91.84 million, down from $132 million in the prior year. These reductions reflect lower TCE rates and spot earnings, which were broadly weaker across all vessel types.

Earnings/Net Income
The company’s net income for Q2 2025 declined to $61.65 million, or $1.25 per diluted share, compared to $144.72 million, or $2.93 per share, in Q2 2024. Adjusted net income was $50 million, or $1.02 per share, excluding gains from vessel sales. The EPS decline of 57.3% highlights the challenging market conditions and lower operational margins. The performance was weaker than expected, indicating a tough quarter for profitability.

Price Action
International Seaways shares have shown resilience in recent trading sessions, with a 1.39% gain on the day, 6.53% for the week, and an 8.33% increase month-to-date.

Post-Earnings Price Action Review
A post-earnings strategy of buying International Seaways shares after a revenue growth quarter has historically performed well, delivering a 75.28% return over the past three years—26.70% higher than the benchmark. The approach, marked by a 75.28% return and a 21.38% compound annual growth rate, has shown robust risk-adjusted performance with no significant drawdowns.

CEO Commentary
Lois K. Zabrocky, President and CEO, emphasized progress in the company’s fleet optimization and disciplined capital allocation. She highlighted the sale of six older vessels and the acquisition of a modern scrubber-fitted VLCC, while maintaining a strong balance sheet and returning cash to shareholders through dividends. Zabrocky also noted the company’s 23rd consecutive quarterly dividend and its confidence in growing oil demand despite geopolitical uncertainties.

Guidance
While the company did not provide updated guidance, it anticipates regional imbalances in oil production and consumption to support tanker demand. The company also expects a reduction in new vessel supply, with only 30% of expected fleet additions offsetting vessel removals.

Additional News
International Seaways executed a significant fleet optimization program in Q2 2025, selling six older vessels and agreeing to purchase a scrubber-fitted VLCC for $119 million. The company also secured a $240 million financing commitment for its LR1 newbuildings, which will be delivered starting in Q3 2025. In terms of shareholder returns, the company declared a combined dividend of $0.77 per share for Q3, representing 75% of adjusted net income. This continues a trend of high payout ratios, with the company having returned over $15.25 per share in dividends since late 2022. Additionally, the company has $50 million in share repurchase authorization remaining, demonstrating its commitment to value creation for shareholders.