Why Is International Seaways (INSW) Up 16.6% Since Last Earnings Report?

It has been about a month since the last earnings report for International Seaways (INSW). Shares have added about 16.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is International Seaways due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

International Seaways Q2 Earnings Beat Estimates

International Seaways reported second-quarter 2026 earnings of $5.91 per share, surpassing the Zacks Consensus Estimate of $5.28 by 11.9%. Earnings increased sharply from $1.25 per share in the year-ago quarter as tanker rates strengthened across the fleet.

Shipping revenues of $467.3 million surged 138.8% year over year and topped the consensus estimate of $406 million by 15%. Higher spot earnings and improved profit-sharing results from applicable time charters drove the outperformance.

INSW's TCE Revenues Surge on Strong Tanker Rates

Consolidated time charter equivalent (TCE) revenues climbed to $434 million from $189 million a year earlier. The blended average spot rate advanced to approximately $79,000 per day from $27,500 in the prior-year quarter.

Net income reached a record $295 million compared with $61.6 million a year ago. Adjusted EBITDA rose to a record $345 million from $102 million, reflecting the stronger rate environment and profit-sharing income.

International Seaways' Crude Tanker Results Strengthen

Crude Tankers revenues increased to $285 million from $104 million in the year-ago quarter, while segment TCE revenues advanced to $253 million from $99 million. Average spot earnings exceeded $64,500 per day, while average time-charter earnings were approximately $75,700 per day, including higher profit-sharing results.

Spot rates were strong across the crude fleet. VLCC earnings averaged $118,900 per day, Suezmax earnings were $100,500 per day and Aframax earnings reached $69,100 per day. The year-over-year improvement more than offset fewer revenue days stemming partly from vessel sales and increased VLCC off-hire time.

INSW's Product Carrier Revenues Nearly Double

Product Carriers' revenues rose to $182 million from $92 million a year earlier. Segment TCE revenues increased to $181 million from $90 million, supported by average spot earnings of approximately $42,600 per day across the product fleet.

On an asset-class basis, LR1 spot earnings averaged $79,200 per day and MR spot earnings averaged $60,300 per day. The rate-driven gains were partly tempered by fewer MR revenue days following the sale of older vessels as International Seaways continued to renew its fleet. 

INSW Advances Its Fleet Optimization Program

International Seaways contracted four additional scrubber-fitted, dual-fuel-ready LR1 newbuildings for an aggregate $244 million. Delivery is expected in the second half of 2028, with the vessels slated to enter the Panamax International Pool.

The company took delivery of Seaways Cristobal during the second quarter, the fourth vessel in its original six-LR1 program. The remaining two vessels are expected to arrive in the third quarter of 2026. As of July 1, the company had 13 vessels on time charters, with approximately $240 million of contracted revenues through expiry, excluding profit-sharing provisions.

International Seaways Provides Q3 Operating View

As of July 30, 2026, 48% of projected spot revenue days for the third quarter were booked at a blended average rate of approximately $61,000 per day. Booked spot rates included $118,300 per day for VLCCs, $91,800 for Suezmaxes, $48,900 for Aframax/LR2 vessels, $37,200 for LR1s and $34,700 for MRs.

Management expects third-quarter vessel expenses of $61-$66 million, general and administrative expenses of $16-$17 million, interest expense of $11-$12 million and depreciation of $40-$42 million. Capital expenditures, including drydock costs but excluding newbuilding payments, are projected at $13-$16 million for the third quarter and $37-$40 million for the second half of 2026.

The company estimates an all-in forward 12-month spot cash break-even rate of about $14,400 per day. Its high booked rates, low leverage and substantial liquidity position International Seaways to continue fleet renewal, debt reduction and shareholder returns while retaining flexibility for strategic opportunities. 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 24.63% due to these changes.

VGM Scores

Currently, International Seaways has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, International Seaways has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

International Seaways is part of the Zacks Transportation - Shipping industry. Over the past month, Kirby (KEX), a stock from the same industry, has gained 4%. The company reported its results for the quarter ended June 2026 more than a month ago.

Kirby reported revenues of $922.4 million in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $1.67 for the same period compares with $1.67 a year ago.

Kirby is expected to post earnings of $1.95 per share for the current quarter, representing a year-over-year change of +18.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.6%.

Kirby has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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