International Seaways Inc. (INSW) Business Profile

What it does

International Seaways owns and operates oceangoing tankers that transport crude oil and petroleum products for customers around the world. Incorporated in 1999 in the Marshall Islands, the company is led by President and Chief Executive Officer Lois K. Zabrocky. Its ultimate customers include oil companies, traders, refinery operators and international government entities.

The business has two segments. Crude Tankers transports crude oil and provides ship-to-ship transfer services, known as lightering. Product Carriers transports refined products from refineries to consuming markets. Those cargoes include gasoline, diesel and jet fuel, as well as some edible oils and chemicals. Some of the company’s product carriers also carry crude oil when market conditions warrant it.

At December 31, 2025, International Seaways owned or operated 70 vessels, with capacity of 8.4 million dwt, or deadweight tons. That measure describes the weight a vessel can carry. The fleet included different sizes of crude tankers and product carriers; ships can move between trades and geographic areas rather than following fixed schedules.

Customers generally hire vessels either for individual voyages at spot-market rates or for set periods at fixed daily rates. International Seaways uses commercial pools—groups of vessels marketed together—to arrange many of its spot voyages. It also employs outside technical managers while retaining in-house commercial and technical expertise.

How it makes money

International Seaways earns shipping revenue by making tankers available to carry customers’ cargoes. Its Crude Tankers segment operates large crude vessels and provides lightering services; its Product Carriers segment transports refined products and other permitted cargoes. In 2025, approximately 52% of time charter equivalent, or TCE, revenue came from Crude Tankers and 48% from Product Carriers.

TCE revenue is a measure the company uses to compare vessel performance across different charter arrangements. Under a voyage charter, a customer hires a vessel for a particular trip. Rates depend on the market when the voyage is arranged. Voyage charters, including vessels in commercial pools, accounted for 82% of aggregate TCE revenue in 2025. Pools collect customer revenue, pay voyage expenses and distribute TCE revenue to shipowners after administrative fees, using a formula that takes account of each vessel’s earning capacity and operating days.

Under a time charter, a customer hires a vessel for a set period at a fixed daily rate. Time charters accounted for 18% of TCE revenue in 2025. They provide predictable revenue during the contract period, although a replacement charter after expiry depends on market conditions. At December 31, 2025, the company had vessels on non-cancelable time charters expiring between March 2026 and April 2030.

Adjusted EBITDA was $474.7 million for 2025 and $345 million for the third quarter of 2026.

Lightering adds a service revenue stream: the company supplies personnel and equipment to transfer crude between ships, or also supplies a lightering vessel for a full-service transfer. Its charter mix and vessel earnings change with available ships, cargo demand and the company’s employment decisions.

Customers and how it sells

International Seaways’ ultimate customers include major independent and state-owned oil companies, oil traders, refinery operators and international government entities. These customer groups include those served through the commercial pools in which the company participates. It generally reaches voyage customers through those pools and also charters vessels for fixed periods.

Its crude and product fleets operate worldwide in the International Flag trade. Tankers are not tied to specific ports or schedules, so they can move between geographic areas and trades as opportunities arise. Product cargoes travel from refineries to consuming markets on both long- and short-haul routes.

The lightering business operates in the U.S. Gulf, U.S. Pacific, Grand Bahama and Panama regions. It serves oil and trading companies moving crude to or from larger vessels that cannot use certain ports because of their size and draft. The business can provide either the personnel and equipment for a transfer or the vessel as well.

At December 31, 2025, International Seaways participated in six commercial pools as its principal means of accessing the spot market. In January 2026, it purchased the remaining interest in the commercial manager of the Tankers International pool. That pool expanded beyond very large crude carriers into Suezmax vessels.

Suppliers and costs

International Seaways uses outside providers alongside its in-house commercial and technical management teams. Pool operators arrange charters for an administrative fee, while two outsourced technical managers supervise vessel management and operations. The company hires seafarers through its technical managers, which act as agents on its behalf. At December 31, 2025, it had 2,763 employees, comprising 2,697 seafarers and 66 shoreside staff.

Its business is capital intensive. Vessel purchases, construction, improvements and drydocking require investment, while operating vessels requires crew, maintenance, repairs and regulatory compliance. Commercial pools pay voyage-related expenses before distributing TCE revenue to participants. The company also uses debt and lease financing and must maintain liquidity to meet repayment obligations.

International Seaways made approximately $426.1 million in capital investments in 2025 for vessel and other property purchases, improvements, construction and drydocking. Its LR1 newbuilding program uses K Shipbuilding Co., Ltd.’s shipyard. The company has also installed ballast water treatment systems and is working on measures to reduce fleet emissions.

Competitive position

International Seaways operates in a fragmented tanker market. It competes with independent shipowners, integrated oil companies, state-owned entities with their own fleets and oil traders with logistics operations. A vessel competes with other vessels of the size and type a customer needs that can be available at the required location and time. No specific competitor is named as such in the available company information.

In the spot market, customers consider price, cargo quantity and cargo type, as well as vessel reliability, age and quality, operating efficiency and crew experience. In time charters, vessel age and quality, operating efficiency and the reputation of the owner and operator tend to be more significant. The lightering business competes with a small number of other participants in the United States and other jurisdictions where it operates.

Commercial pools arrange charters and can secure backhaul voyages and contracts of affreightment, reducing waiting time for vessels. The company also employs seafarers with specialized certifications for product trades and provides lightering services where large ships cannot access certain ports.

Our reading: Pool participation and operating expertise can help the company serve customers and use vessels, but they provide a limited moat in a market where available ships compete heavily on price. Our reading: Lightering and specialized product operations add service capabilities, though the evidence does not establish how difficult those capabilities are for rivals to match.

Growth opportunities

International Seaways seeks to manage the size, age and composition of its fleet through purchases and sales over shipping cycles. Its strategy includes acquiring secondhand vessels, resales or newbuild contracts when it expects suitable returns, and selling vessels when it considers their sale value favorable relative to future earnings. It also aims to grow its crude lightering business and use a mix of spot voyages and selective time charters.

At December 31, 2025, four dual-fuel-ready LR1 product carriers were contracted for delivery between the first and third quarters of 2026. International Seaways subsequently ordered four additional LR1 newbuildings for delivery in the second half of 2028. By the third-quarter 2026 earnings call, it said six of its new LR1s were on the water.

The company also announced a transaction bringing four newbuild very large crude carriers into the fleet, with shares used as the primary means of payment. It said this approach preserves financial resources for other opportunities while remaining transaction steps are completed.

International Seaways has expanded the Tankers International platform into Suezmax vessels and plans to move its Suezmax vessels from another pool onto that platform. It continues to assess tanker demand and vessel supply when making fleet decisions. The company expects a significant portion of older tanker tonnage to leave the trading fleet as geopolitical tensions ease.

Structural risks

• Tanker cycles: Charter rates and vessel values can change substantially as vessel supply and demand shift. Newbuilding deliveries, recycling, oil production, trade patterns and economic conditions all affect the market. Much of the company’s revenue is exposed to spot rates.
• Geopolitics and trade: Armed conflict, sanctions, embargoes and trade restrictions can alter oil flows and demand for particular vessels. International operations also expose the company to changing political and government conditions.
• Vessel safety: Marine disasters, bad weather, mechanical failures, human error, piracy, groundings and collisions can damage vessels or cargoes and cause injury or death to crews and shoreside employees.
• Debt and capital needs: International Seaways has incurred significant indebtedness that could affect its ability to finance operations, pursue opportunities and meet debt obligations. Its capital-intensive business depends on continued access to capital and sufficient liquidity.
• Environmental rules: Greenhouse-gas and other environmental regulation can require additional capital or operating expenditure and affect vessel operations. The company cannot predict the precise financial or operational impact of FuelEU Maritime on its business.
• Shareholder protections: International Seaways is incorporated in the Marshall Islands, which may provide fewer shareholder rights and protections than a typical U.S. jurisdiction.

Bottom line

Our reading

International Seaways is a capital-intensive tanker operator whose earnings depend heavily on spot-market rates and the supply of ships available for oil cargoes. Its mix of crude and product vessels, pool access and lightering services give it several ways to participate in the market, while time charters provide some contracted revenue. Fleet renewal requires continuing investment, and debt obligations, vessel safety and environmental rules remain material alongside the tanker cycle.