International Seaways declares record dividend as Q1 profit hits $286M

International Seaways (NYSE:INSW) reported a highly profitable first quarter for 2026, characterized by record shareholder returns and significant progress in its fleet modernization strategy.

The New York-based tanker operator posted net income of $286 million, or $5.75 per diluted share, for the quarter ended March 31, 2026.

On an adjusted basis, net income stood at $194 million, or $3.90 per diluted share, while adjusted EBITDA reached $244 million.

The disparity between GAAP and adjusted figures primarily reflects $88 million in gains recognized from the company's fleet optimization program.

During the quarter, Seaways successfully sold seven vessels with an average age of 17 years, generating net proceeds of approximately $216 million.

Bolstered by strong market conditions and a lean balance sheet, the company declared a quarterly dividend of $4.55 per share to be paid in June 2026—the largest in its history.

This payout reflects a hike in the company's payout ratio to 85% of adjusted net income, supplemented by a discretionary component.

The announcement marks a significant milestone for the firm, which has now returned over $1 billion to shareholders since 2020.

Year-to-date, International Seaways has delivered a total shareholder return of over 74%, driven by both aggressive dividend distributions and substantial share price appreciation.

Meanwhile, the company continues to lower the average age of its fleet while expanding its capacity in the Long Range 1 (LR1) segment.

Seaways took delivery of the Seaways Bonita in the first quarter and the Seaways Cristobal in April.

These vessels represent the third and fourth of six dual-fuel ready LR1 newbuildings, with the final two ships expected to join the fleet in the third quarter of 2026.