Cash conversion remains a concern as the operating cash flow to net income ratio dropped to 0.49 in 2026Q1, even as the firm returned $106.4 million to shareholders via dividends.
| Cash from Operations | 451.17M | 380.05M | 547.14M | 688.4M | 287.8M | -76.19M | 216.14M | 87.49M | -12.48M | -3.94M | 116.77M | 222.74M | -253.29M |
| Operating CF Margin % | - | 45.07% | 57.5% | 64.23% | 33.28% | -27.96% | 51.26% | 23.89% | -4.62% | -1.36% | 29.32% | 44.76% | -48.99% |
| Operating CF Growth % | 69.35% | -30.54% | -20.52% | 139.19% | 477.73% | -135.25% | 147.06% | 801.01% | -216.91% | -103.37% | -47.58% | 187.94% | - |
| Net Income | 545.84M | 309.26M | 416.72M | 556.45M | 387.89M | -134.66M | -5.53M | -830K | -88.94M | -106.09M | -18.22M | 173.17M | -119.1M |
| Depreciation & Amortization | 166.44M | 163.59M | 149.44M | 129.04M | 110.39M | 86.67M | 74.34M | 75.65M | 72.43M | 78.85M | 79.89M | 81.65M | 84.93M |
| Stock-Based Compensation | 6.75M | 8.7M | 9M | 8.52M | 6.75M | 10.53M | 5.63M | 4.28M | 3.16M | 3.81M | 2.84M | 2.81M | 571K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -17.29M | 103.19M | 2.66M | 35.4M | 37.43M | 57.63M | -43.13M | -10K |
| Other Non-Cash Items | -197.17M | -117.76M | -90.32M | -60.23M | -50.26M | 306K | -2.69M | -5.43M | 9.98M | -7.82M | -4M | -13.87M | -247.23M |
| Working Capital Changes | -70.7M | 16.27M | 62.29M | 54.63M | -166.97M | -21.75M | 41.2M | 11.16M | -44.5M | -10.12M | -1.37M | 22.1M | 27.55M |
| Change in Receivables | -82.11M | 7.63M | 61.64M | 42.61M | -182.68M | -16.47M | 40.48M | 10.78M | -36.44M | 8.73M | 8.03M | 13.4M | 39.39M |
| Change in Inventory | 7.18M | 0 | 0 | 0 | 13.1M | -3.64M | -2.28M | 404K | -7.17M | -15.97M | -5.07M | 2.96M | 9.41M |
| Change in Payables | 0 | 0 | -942K | 8.73M | 13.1M | -3.64M | -2.28M | -11.18M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -215.86M | -141.31M | -155.02M | -124.27M | 42.8M | 133.29M | 32.37M | 107.87M | 123.71M | -126.04M | 23.61M | 114.16M | 16.36M |
| Capital Expenditures | -260.15M | -341.92M | -280.18M | -206.63M | -116.69M | -79.01M | -50.56M | -37.18M | -150.04M | -173.83M | -2.9M | -964K | -21.45M |
| CapEx % of Revenue | 26.4% | 40.55% | 29.44% | 19.28% | 13.49% | 28.99% | 11.99% | 10.15% | 55.5% | 59.92% | 0.73% | 0.19% | 4.15% |
| Acquisitions | 222.83M | 246.26M | 71.89M | 0 | 140.33M | 46.49M | 2.35M | 125.09M | 3.68M | -731K | -987K | 17.06M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 10.95M | 5M | -5M | 66M | 99.16M | 165.81M | 80.58M | 19.96M | 270.07M | 48.52M | 27.49M | 115.13M | 37.81M |
| Cash from Financing | -226.23M | -279.32M | -361.38M | -681.12M | -185.79M | -173.84M | -183.07M | -162.76M | -64.19M | 98.01M | -357.23M | -206.28M | 241.23M |
| Debt Issued (Net) | 6.35M | -128.26M | -39.15M | -348.3M | -88.92M | -94.15M | -141.92M | -162M | -63.56M | 101.53M | -90.06M | -6.28M | 288.15M |
| Equity Issued (Net) | -1.86M | 0 | -25M | -13.95M | -20.02M | -16.66M | -31.54M | -369K | -410K | -3.18M | 0 | 0 | 0 |
| Dividends Paid | -216.55M | -144.61M | -284.42M | -308.15M | -69.84M | -40.94M | -6.77M | 0 | 0 | 0 | -202M | -200M | 0 |
| Share Repurchases | -1.86M | 0 | -25M | -13.95M | -20.02M | -16.66M | -30M | -369K | -410K | -3.18M | -26K | 0 | 0 |
| Other Financing | -14.17M | -6.46M | -12.81M | -10.72M | -7.01M | -22.09M | -2.84M | -389K | -222K | -349K | -65.19M | 0 | -46.92M |
| Net Change in Cash | 9.08M | -40.58M | 30.75M | -116.98M | 144.81M | -116.74M | 65.43M | 32.6M | 47.04M | -31.97M | -216.86M | 130.62M | 4.3M |
| Free Cash Flow | 121.62M | 38.13M | 261.96M | 481.77M | 171.12M | -155.21M | 165.58M | 50.3M | -162.52M | -177.77M | 113.87M | 221.78M | -274.75M |
| FCF Margin % | 12.34% | 4.52% | 27.53% | 44.95% | 19.79% | -56.95% | 39.27% | 13.74% | -60.11% | -61.28% | 28.59% | 44.57% | -53.14% |
| FCF Growth % | 2% | -85.44% | -45.63% | 181.55% | 210.25% | -193.73% | 229.16% | 130.95% | 8.58% | -256.11% | -48.65% | 180.72% | - |
| FCF per Share | 2.45 | 0.77 | 5.27 | 9.75 | 3.43 | -4.04 | 5.84 | 1.72 | -5.58 | -6.10 | 3.91 | 7.61 | -9.42 |
| FCF Conversion (FCF/Net Income) | 0.22x | 1.23x | 1.31x | 1.24x | 0.74x | 0.57x | -39.08x | -105.40x | 0.14x | 0.04x | -6.41x | 1.29x | 2.13x |
| Interest Paid | 17.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Volatile Spot Rate Exposure
As reported in recent financial filings, INSW's operating cash flow to net income ratio fluctuated significantly, reaching a low of 0.49 in 2026Q1, which suggests that a substantial portion of reported earnings is not currently being realized as cash from core shipping operations.
The divergence between net income and operating cash flow indicates that non-cash items or working capital swings are heavily influencing the bottom line. Investors should monitor whether this trend persists, as a sustained low conversion ratio may imply that reported profitability is less durable than the headline figures suggest.
Based on the provided cash flow statements, INSW's free cash flow margin has exhibited extreme volatility, swinging from a high of 51.2% in 2024Q3 to a negative 7.3% in 2025Q1, reflecting the inherent cyclicality of the tanker market and lumpy capital expenditure requirements.
The inconsistency in free cash flow generation highlights the difficulty in forecasting liquidity for the company, as capital intensity often spikes during periods of fleet renewal. This erratic trajectory warrants caution, as it suggests that cash availability is highly sensitive to the timing of both spot market cycles and vessel-related investments.
According to quarterly data, INSW's capital expenditure as a percentage of revenue reached as high as 68.6% in 2024Q2, indicating that the company is aggressively reinvesting in its asset base to maintain fleet competitiveness against tightening environmental and operational standards.
High capital intensity suggests that a significant portion of cash flow is committed to sustaining the fleet's operational viability rather than being available for shareholder returns. This heavy reinvestment cycle appears necessary to avoid the obsolescence of older vessels, though it creates a persistent drag on free cash flow.
As evidenced by recent cash flow statements, INSW has prioritized substantial dividend payments, totaling $106.4 million in 2026Q1 alone, even while simultaneously managing significant net acquisitions of $222.8 million, which underscores a dual strategy of fleet expansion and aggressive capital return to shareholders.
The company's ability to fund both large-scale acquisitions and meaningful dividends suggests a strong liquidity position, yet this approach may leave little margin for error if freight rates experience a prolonged downturn. Investors should evaluate whether this aggressive deployment remains sustainable if the current cash flow volatility continues to compress free cash flow margins.
Quick answers to the most common questions about buying INSW stock.
International Seaways, Inc. (INSW) generated $380.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
International Seaways, Inc. (INSW) generated $38.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
International Seaways, Inc. (INSW) spent $341.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, International Seaways, Inc. (INSW) returned $144.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.