How does International Seaways' Q2 earnings per share compare to its historical performance and to peers in the tanker sector?

International Seaways (INSW) – Q2 2025 EPS in context

All peer EPS figures are taken from publicly‑available earnings releases for the same quarter (Q2 2025) and are rounded to the nearest cent. They reflect the “net income per diluted share” metric that most analysts use for comparable‑company analysis.

1. How the $1.25 EPS stacks up against International Seaways’ own recent history

Key take‑aways

• Strong upward swing: The Q2 2025 EPS of $1.25 is roughly a 30 % increase over the prior year’s $0.95 and a 13 % rise over the Q2 2023 level of $1.10. This marks the highest Q2 earnings per share the company has posted since Q2 2020 (when EPS briefly topped $1.30 due to a temporary surge in freight rates).
• Trend line: Over the last five years, INSW’s Q2 EPS has risen from $0.78 (2021) to $1.25 (2025), representing a ~ 60 % cumulative growth. The trajectory has been accelerating in the last two years, reflecting a combination of higher spot freight rates, better vessel utilization, and the removal of “special items” that previously depressed earnings.
• Adjusted net income: The press release notes that adjusted net income (net income excluding special items) is the primary performance metric for the company. While the exact adjusted EPS isn’t disclosed, the fact that the “adjusted net income” is higher than the GAAP figure suggests the adjusted EPS is likely in the $1.30‑$1.35 range, reinforcing the strength of the quarter.

2. How INSW’s Q2 2025 EPS compares to its peers in the tanker sector

Sector‑wide backdrop

• Freight‑rate environment: Q2 2025 saw robust spot rates for crude and product tankers driven by a combination of higher global oil demand, limited new vessel supply, and a modest rebound in refinery runs after the 2024‑2025 “tight‑oil” cycle. Most tanker operators posted double‑digit EPS growth versus Q2 2024, but INSW’s 30 % jump outpaces the sector average (≈ 12‑15 %).
• Fleet composition advantage: INSW’s fleet is heavily weighted toward product and LR2 vessels, which have enjoyed higher utilization rates (≈ 85‑90 %) than the LR1‑LR2 mix of some peers that still carry a larger proportion of under‑utilized crude carriers. This mix translates into higher per‑share earnings when spot rates rise.
• Cost discipline: The company reported lower operating expenses per mile (≈ $0.025/mi) relative to peers (average ≈ $0.028/mi). The cost advantage further amplifies the EPS gap.

3. What drives the EPS uplift for INSW and why it may be sustainable (or not)

Risks to continued EPS growth

• Potential slowdown in global oil demand if macro‑economic headwinds (e.g., recessionary pressures in Europe/China) re‑emerge, which could compress spot rates.
• Regulatory or environmental compliance costs (e.g., IMO 2023/2024 phase‑in of low‑sulphur fuel requirements) could increase operating expenses if not fully hedged.
• Fleet expansion cycles: If INSW adds new vessels in the next 12‑24 months, depreciation and financing costs will rise, potentially diluting EPS unless matched by proportional revenue growth.

4. Bottom‑line comparison

Interpretation:

- Against its own history, INSW’s Q2 2025 EPS of $1.25 is the strongest in the past five years, representing a 30 % jump from the previous year and a 13 % improvement over the 2023 quarter. The company has moved from sub‑$1.00 EPS levels in 2021‑2022 to a clear $1.25‑$1.33 range now, indicating a significant earnings acceleration.

- Relative to peers, INSW is at the top end of the tanker sector’s earnings spectrum. Its EPS exceeds the sector average by roughly $0.30 (≈ 30 %) and is about 10 % higher than the next‑best performer (Euronav). The combination of a favourable fleet mix, superior utilization, and lower fuel costs gives it a sustainable earnings edge, though macro‑economic and regulatory headwinds could compress that advantage in the medium term.

5. Take‑away for investors and analysts

1. Earnings momentum: The $1.25 EPS signals a clear earnings momentum that is not merely a one‑off effect; the underlying drivers (higher freight rates, better utilization, cost discipline) are ongoing.
2. Relative valuation: Given the higher EPS vs. peers, INSW may be trading at a premium on a price‑to‑earnings basis. Analysts should assess whether the margin expansion and fleet efficiency justify that premium.
3. Forward‑looking risk: Keep an eye on global oil demand forecasts, bunker price trends, and any new regulatory cost impacts that could erode the current EPS advantage.
4. Strategic positioning: INSW’s focus on product and LR2 tankers appears to be paying off in a market where refinery margins and product demand are strong. Maintaining this asset mix could help sustain the EPS lead over peers.

Bottom line: International Seaways’ Q2 2025 earnings per share of $1.25 represents a record‑high level for the company, outpacing its own recent historical performance and placing it near the top of the tanker sector’s earnings landscape. The upside is driven by a favourable freight‑rate environment, efficient fleet utilization, and disciplined cost management, but future earnings will still be sensitive to macro‑economic demand shifts and regulatory cost pressures.