By Al Root

Parents know that 'touch a truck' events held in many small towns, where enthusiasts can get up close with bright red firetrucks, are undeniable winners with small children.

Firetrucks are cool. They aren't only for kids. They matter for investors, too. Shares of firetruck maker Oshkosh could rise 40% from recent levels.

"The U.S. fire truck (known as fire apparatus) industry is a niche, but mission-critical segment of the specialty vehicle market, characterized by highly customized products, primarily public sector buyers, long replacement cycles, and regulated standards," wrote KeyBanc analyst Steve Barger in a Tuesday report.

He estimates an annual U.S. market of $4.5 billion, and three companies hold 80% of the market share. Oshkosh, with its Pierce and Maxi-Metal brands, is the leader, Terex, with its E-One and KME brands, is No. 2, and the Austrian company Rosenbauer comes in third.

Firetrucks account for about 15% of Oshkosh's sales. The company makes many other machines, including delivery vehicles for the USPS. Firetrucks account for about 18% of Terex's sales. It also makes many cranes. Rosenbauer is a fire prevention specialist.

Firetrucks are good business these days: "Our broad industry takeaway is robust strength will continue into 2028 and beyond, and we think the 'big will continue to get bigger' as lead times and backlog....normalize, " added Barger, the KeyBanc analyst. Lead times for trucks have stretched out to 3 years, from a year before COVID. Annual sales growth trends around 8%.

Demand is strong, while manufacturing capacity is constrained, leading to rising prices. A new pumper truck, the kind children want to sit in, can cost $1.2 million, up 100% over the past 10 years.

Municipalities are the ones generally left footing the bill. It's generally money well spent. There are about 1.4 million fires in the U.S. annually. That number is down from about 1.6 million over the past 20 years. The money spent repairing fire damage, however, is up to about $20 billion, doubling over that timeframe.

Barger likes Oshkosh stock and rate shares Buy. His price target is $180, up more than 40% from recent levels. Overall, 63% of analysts covering Oshkosh stock rate shares Buy. The average Buy-rating ratio for stocks in the S&P 500 typically ranges between 55% and 60%. The average analyst price target for Oshkosh stock is about $163.

He rates Terex shares Hold and doesn't have a price target for shares, according to FactSet. Overall, 64% of analysts covering Terex rate shares Buy. The average analyst price target is about $77, up more than 20% from recent levels.

Barger doesn't cover Rosenbauer. Three analysts cover the stock in Europe. All three rate shares Buy. The average price target is about 63 euros, up 10% from recent levels.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 13, 2026 17:25 ET (21:25 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.