Russel Metals (RUS) added another 15% on the back of a Q2 that blew estimates out of the water, driven by higher prices and record shipment volumes tied to the ramp up of its Kloeckner acquisition…

… which should increase contribution from the US as it scales…

… and drive 100-200 bps of gross margin expansion over current levels, which sit at three-year highs ($529 per ton). That momentum looks set to continue, with July running ahead of Q2…

… thanks to strong end market activity (data centers, power, infra, etc.), with current lead times of 90-120 days tracking ~3x above normal levels. Management expects the demand backdrop is structural…

… implying cycle durability that investors are pricing in, with the stock trading near its peak forward EBITDA multiple and up 85% YTD.

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