스트라타시스(SSYS) 2026년 2분기 실적 발표 전화회의: 사상 최대 소모품 매출, 현금흐름 전망치 수정

핵심 요약

• 스트라타시스(Stratasys)는 2026년 2분기 매출이 1억 3,760만 달러를 기록해 전 분기(1억 3,270만 달러) 대비 3.7% 증가했으며, 전년 동기(1억 3,810만 달러)와는 비슷한 수준을 유지했다고 발표했습니다.
• 소모품 매출은 제조용 소재 사용 확대와 시스템 가동률 상승에 힘입어 2025년 2분기 6,420만 달러에서 증가한 6,630만 달러를 기록하며 분기 최대 실적을 달성했습니다.
• 항공우주 및 방산 부문 매출은 전년 동기 대비 17% 증가했습니다. 스트라타시스 다이렉트(Stratasys Direct)는 드론 생산, 탄약 제조 및 기타 방산 분야의 수요에 힘입어 12.1% 성장했습니다.
• 비GAAP 순이익은 230만 달러(희석주당순이익 $0.03)를 기록했습니다. 조정 EBITDA는 전 분기 200만 달러에서 530만 달러로 개선되었으나, 전년 동기의 610만 달러보다는 감소했습니다.
• 스트라타시스는 영업활동 현금흐름을 제외한 2026년 연간 실적 전망치를 재확인했습니다. 경영진은 하반기 영업활동 현금흐름의 흑자 전환을 예상하지만, 연간 기준으로는 더 이상 양(+)의 영업활동 현금흐름을 기대하지 않는다고 밝혔습니다.
• 진행 중인 4,250만 달러 규모의 마크포지드(MarkForged) 현금 인수 건은 2026년 하반기에 완료될 것으로 예상됩니다. 경영진은 인수 후 1년 이내에 수익성 개선과 함께 해당 인수 사업으로부터 양(+)의 EBITDA 기여가 나타날 것으로 기대하고 있습니다.

주요 재무 데이터

사업 및 운영 실적

항공우주 및 방산 부문은 스트라타시스의 가장 큰 사업 분야로 유지되었으며, 2025년 2분기 대비 17% 성장했습니다. 경영진은 이번 매출 증가가 미 공군이 유지보수 및 비행용 예비 부품 생산을 위해 F900 시스템 도입을 확대한 영향도 일부 있다고 설명했습니다. 회사는 이러한 배치가 일회성 주문이 아닌 사업 프로그램 확장 단계에 해당한다고 밝혔습니다.

스트라타시스 다이렉트의 부품 제조 매출은 전년 동기 대비 12.1% 증가했습니다. 수요는 주로 드론, 탄약 및 차세대 플랫폼을 개발하는 방산 기술 기업들로부터 발생했습니다. 경영진은 해당 부문이 역대 최대 수주 잔고를 기록 중이며, 주로 드론 용도를 중심으로 1만 2,000개 이상의 항공우주 및 방산 부품을 생산했다고 밝혔습니다.

퀵파츠(Quickparts)는 소재, 소프트웨어 및 서비스를 포함하는 수년 단위의 수백만 달러 규모 계약을 통해 Neo 800-plus 시스템 12대를 구매하기로 합의했습니다. 이 시스템들은 항공우주, 방산, 첨단 모빌리티 및 에너지 분야의 생산 응용 프로그램을 지원할 예정이며, 그중 3대는 유럽 시설에 배치됩니다.

스트라타시스는 또한 F900 시스템의 차세대 실시간(in-situ) 모니터링 기능과 향후 출시될 F3300 기술 쇄신 솔루션에 초점을 맞춘 2년간 780만 달러 규모의 아메리카 메이크스(America Makes) 프로그램 계약을 수주했습니다.

자동차 분야에서는 디이치자동차(FAW Group)가 2분기 중 인도된 2대를 포함해 연말까지 F900 시스템 12대를 구매하기로 합의했습니다. 해당 시스템은 주로 내장재 최종 부품 제조에 사용될 예정입니다. 또한 화낙(FANUC)은 주요 완성차(OEM) 고객사의 요청에 따라 자사 공급망 내에 스트라타시스의 산업용 솔루션을 도입했습니다.

추진 중인 마크포지드(MarkForged) 인수를 통해 연속 탄소섬유 기술, 시뮬레이션 및 분산형 프린트 관리 소프트웨어, 인재, 리셀러 네트워크를 확보하게 됩니다. 기존 마크포지드는 2025년에 약 7,000만 달러의 매출을 올렸습니다. 경영진은 항공우주, 방산, 자동차 및 산업용 공구 분야에서 교차 판매 시너지가 특히 클 것으로 기대하고 있습니다.

경영진 실적 전망(가이던스)

스트라타시스는 영업활동 현금흐름을 제외한 2026년 연간 실적 전망치를 재확인했습니다. 회사는 2026년 4개 분기 전체에 걸쳐 전 분기 대비 매출 성장이 이어질 것으로 계속 전망하고 있습니다.

경영진은 대형 제조 거래 파이프라인에 힘입어 하반기 시스템 매출이 눈에 띄게 증가할 것으로 예상했습니다. 다만 이러한 계약의 수주 시점에 따라 분기별 변동성이 발생할 수 있습니다.

상반기 현금 소진에 따라 스트라타시스는 더 이상 연간 영업활동 현금흐름의 흑자를 예상하지 않습니다. 경영진은 여전히 2026년 하반기에는 양(+)의 영업활동 현금흐름을 기록할 것으로 전망하고 있습니다.

마크포지드 인수 거래는 관례적인 규제 승인 절차를 거쳐 2026년 하반기에 마무리될 것으로 예상됩니다. 스트라타시스는 매출 및 비용 시너지를 통해 인수 완료 후 첫해 이내에 수익성이 개선되고 양(+)의 EBITDA 기여를 나타낼 것으로 기대합니다.

리스크 및 주요 관전 포인트

• 시스템 매출은 전년 동기 3,060만 달러에서 2,640만 달러로 감소한 반면, 대형 제조 계약 중심으로 사업을 전환하려는 경영진의 전략으로 인해 영업 주기 기간과 분기별 변동성이 커지고 있습니다.
• 이스라엘 세켈화 강세는 분기 비GAAP 영업이익 및 조정 EBITDA에 290만 달러 규모의 부정적 영향을 미쳤습니다.
• 2분기 영업활동 현금 유출액은 1,870만 달러에 달했으며, 이는 부분적으로 지식재산권 보호와 관련된 비경상 법률 비용에 기인했습니다.
• 비GAAP 매출총이익률의 전 분기 대비 개선에도 불구하고, 매출총이익률은 전년 동기 수준을 밑돌았습니다.
• 마크포지드 인수는 여전히 규제 승인 절차를 남겨두고 있으며, 예상 시너지 및 첫해 EBITDA 기여 전망은 경영진의 추정치입니다.

애널리스트 Q&A 주요 내용

애널리스트들은 시스템 매출이 언제 다시 성장세로 돌아설 수 있을지에 주목했습니다. 경영진은 스트라타시스가 전사 매출의 전 분기 대비 성장을 계획대로 이어가고 있으며 하반기 시스템 매출이 대폭 증가할 것으로 기대한다고 밝혔습니다. 또한 사업 구조가 더 큰 규모의 다년간 제조 주문 중심으로 이동함에 따라 연간 트렌드의 중요성이 더욱 커지고 있다고 설명했습니다.

마크포지드와 관련하여 경영진은 연속 탄소섬유, 부합하는 항공우주 및 공구 응용 분야, 상호 보완적인 판매 채널, 소프트웨어, 엔지니어링 인재를 5대 핵심 전략 축으로 꼽았습니다. 회사는 연속 탄소섬유 부품이 경량화 디자인, 원가 절감, 후처리 감소를 통해 일부 금속 부품을 대체할 수 있을 것으로 보고 있습니다.

경영진은 또한 미국 주요 치과 기공소들과의 협업 및 가체성(removable) 치과 응용 솔루션의 지속적인 개발을 언급하며, 치과 분야를 중요한 장기적 기회 요소로 강조했습니다.

실적발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good day, and welcome to today's Conference Call to discuss Stratasys' Second Quarter 2026 Financial Results. My name is Rob, and I'm your operator for today's call.

Now I'd like to hand the call over to Yonah Lloyd, Chief Communications Officer and Vice President of Investor Relations for Stratasys. Mr. Lloyd, please go ahead.

Yonah Lloyd

Good morning, everyone, and thank you for joining us to discuss our 2026 second quarter financial results. On the call with us today is our CEO, Dr. Yoav Zeif; and CFO, Eitan Zamir. I would like to remind you that access to today's call, including the slide presentation, is available online at the web address provided in our press release. In addition, a replay of today's call, including access to the slide presentation, will also be available and can be accessed through the Investor Relations section of our website.

Please note that some of the information provided during our discussion today will consist of forward-looking statements, including, without limitation, those regarding our expectations as to our future revenue, gross margin, operating expenses, taxes and other future financial performance and our expectations for our business outlook. All statements that speak to future performance, events, expectations or results are forward-looking statements. Actual results or trends could differ materially from our forecast. For risks that could cause actual results to be materially different from those described in forward-looking statements, please refer to the risk factors discussed or referenced in Stratasys' annual report on Form 20-F for the 2025 year.

Please also refer to that annual report, along with our reports filed with or furnished to the SEC throughout 2026 for additional operational and financial details. Reports on Form 6-K that are furnished to the SEC on a quarterly basis and throughout the year, provide updated current information regarding the company's operating results and material developments concerning our company. Stratasys assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

As in previous quarters, today's call will include GAAP and non-GAAP financial measures. The non-GAAP financial measures should be read in combination with our GAAP metrics to evaluate our performance. Non-GAAP to GAAP reconciliations are provided in tables in our slide presentation and today's press release.

I will now turn the call over to our Chief Executive Officer, Dr. Yoav Zeif. Yoav?

Yoav Zeif

Thank you, Yonah. Good morning, everyone, and thank you for joining us. Our second quarter results reflect a record-setting level of consumables sales as we continue to effectively drive recurring revenue from materials that are specifically used for manufacturing end-use parts. This growth in consumables is a great indicator of the high utilization of our systems and speaks directly to our strategy to increase the manufacturing portion of our business.

Total revenue grew 3.7% sequentially. Once again, Stratasys Direct had a strong quarter, driven by aerospace and defense customers, reinforcing the trajectory of our production parts division, and our earnings results reflect continued focus on operational rigor and disciplined cost management. As we capitalize on the megatrends that are driving additive manufacturing adoption, aerospace and defense remains a clear proof point.

Mission-critical performance requirements and accelerating supply chain resiliency mandates are translating into durable structural demand for our platforms. This reflect a fundamental shift for high-demand manufacturers as they seek localized, flexible production-grade capabilities. Importantly, with both make and buy optionality, Stratasys is proving to be uniquely positioned to capture this potentially seismic shift.

Independent industry estimates suggest the additive manufacturing opportunity could double by the end of the decade and double again within a few short years, reinforcing our conviction that we are still early in this transformation. We also took a significant step forward in strengthening that positioning with our pending acquisition of MarkForged, which we expect to close later this year. Adding MarkForged with its continuous carbon fiber technology, materials and software platform will meaningfully augment our offering, particularly in aerospace, defense and industrial production.

Speaking of aerospace and defense. In the second quarter, we demonstrated strong momentum. A&D is our largest business by far and a strong ongoing example of our success in manufacturing, growing 17% relative to the second quarter last year. We estimate that we are the leading player in polymer additive manufacturing for A&D. Second quarter results were partially driven by expanding adoption across the U.S. Air Force for deeper level sustainment and spare parts production.

Ongoing multiple system investments in our Workhorse F900 system certified by the Air Force for flightworthy production parts are propelling this growth. These orders are not onetime, rather, they are increasing in volume for location across their sustainment enterprise to support established programs of record, turning into large ongoing programs. Once a part is qualified on our platforms, that relationship tends to be long term, given the cost and complexity of requalifying another resource. This durability is a meaningful reason that we view this new demand quotient as structural rather than cyclical.

During the quarter, we were proud to have enhanced a strategic relationship with Quickparts, a Seattle-based international on-demand manufacturer with its purchase of 12 Neo 800-plus systems, in addition to its existing 6 units. This is a multiyear, multimillion dollar agreement across materials, software and service. Importantly, the systems will be used for manufacturing production parts in key verticals such as aerospace, defense, advanced mobility and energy. In addition to the systems going to Quickparts Seattle Aerospace Center of Excellence in the U.S., this deal includes a geographical expansion with 3 of the units being placed across its facilities in Europe.

Recently, Stratasys was awarded a 2-year program totaling $7.8 million through the 2026 America Mix OIB Modernization Challenge. America Makes is the leading public-private partnership for 3D printing and additive manufacturing technology, managed by the National Center for Defense Manufacturing and Machining. The program's focus is to advance next-generation in-situation monitoring for hardware and software capabilities for both our F900 and a future technology refresh solution with our F3300. This program indicates a long-term DOW strategy that integrates our production platforms.

As the Executive Director of America Makes noted, this project will create a stronger foundation for expanding additive manufacturing across production, sustainment and supply chain applications throughout the defense enterprise. It further positions Stratasys as the trusted source for qualified manufacturing, enabling a new business model for reliable production of scalable mission-critical components while supporting long-term parts and platform sustainment requirements across the defense industrial base. Our Stratasys direct parts manufacturing business delivered 12.1% year-over-year growth in the second quarter of 2026 relative to the corresponding quarter in 2025.

This was fueled primarily by increasing demand from defense technology companies for drone production, munitions manufacturing and production applications across next-generation platforms. This emerging demand reinforces the growing role of additive manufacturing as a sustainable strategic enabler of defense industrial-based modernization, resilient domestic supply chain and scalable production.

Turning to automotive. This quarter, FANUC, one of the world's leading industrial automation companies, adopted our industrial solutions into its supply chain. This reflects another broader trend starting to emerge across manufacturing where automotive OEMs and their suppliers are aligning with common additive manufacturing platforms. That alignment means production tooling and replacement parts only have to be qualified once and then they can be manufactured at any location around the globe. This improves consistency of quality and reduces lead times across their manufacturing ecosystem.

Of particular note, the FANUC engagement came at the request of a major automotive OEM customer who have standardized common tools and parts between them. This is another exciting next step in the automotive industry's move towards additive manufacturing at scale.

And in another example of how our technology is penetrating the automotive production line, FAW Group, one of the largest Chinese auto OEMs signed an agreement to purchase 12 F900 systems by year-end, with 2 shipped in the second quarter on top of the 5 F900 and 8 other Stratasys systems they already operate. This reflects one of our competitive advantages in high requirement industrial applications relative to Chinese lower-end options locally. Notably, these systems are being used primarily for production of interior end-use parts such as armrest and panels. This is a great example of recurring business that emerges once our customers experience the extreme value Stratasys creates on their production lines.

Now I will discuss MarkForged in greater detail. This will be a $42.5 million cash purchase once the usual regulatory steps are clear. Legacy MarkForged generated approximately $70 million of revenue in 2025. We continue our thorough evaluation and review of the business as we focus on ensuring we optimize the combined offering. We expect to realize a rapid return on our investments through new revenue streams and unlocking meaningful synergies, which will result in a better margin and positive contribution to EBITDA within the first year after closing.

We believe that building product capacity in target markets such as aerospace and defense, along with production-grade manufacturing more broadly makes great sense. MarkForged's continuous carbon fiber technology addresses a growing opportunity for certain stronger, lighter parts that can replace metal. Additionally, their software platform provides excellent simulation and remote print management. We are confident that the MarkForged acquisition will enhance our growth in A&D.

Beyond the technology, we will also be integrating their talent, partners and reseller network, which opens up additional cross-sell opportunities. Put simply, MarkForged will enable us to say yes to more new business faster, especially in aerospace, defense and automotive. Finally, in June, we celebrated the grand opening of our Americas Regional Corporate Headquarters or ARCH, a 200,000 square foot facility in Minnetonka, Minnesota.

ARCH brings together engineering, innovative research and development, applications expertise, Stratasys direct and customer collaboration capabilities, all under one roof. This larger, more advanced headquarters will support anticipated growing demand and reinforces our focus on production scale additive manufacturing. We are proud to have received bipartisan congressional support at the opening event, a strong message validating the value lawmakers see in Stratasys technology and in our U.S. operations. And the feedback has been encouraging from those investors that have visited, seeing our technology at work in real-world environment can greatly enhance the appreciation for our strategy. We look forward to hosting more of the investment community in the future.

With that, I will turn the call to Eitan to review our financials. Eitan?

Eitan Zamir

Thank you, Yoav, and good morning, everyone. Our second quarter results reflect continued execution on our manufacturing focused strategy and deepen customer reliance on our solutions as demonstrated by our highest ever quarterly revenue for consumables and multiple repeat customer sales for aerospace, defense and automotive customers.

Let me get into the details. Second quarter consolidated revenue was $137.6 million, up 3.7% sequentially from $132.7 million in the first quarter and roughly flat compared to $138.1 million in the same period last year. System revenue was $26.4 million compared to $30.6 million in the same period last year. Consumable revenue reached a quarterly record $66.3 million compared to $64.2 million in the same period last year, driven by increased sales of manufacturing material, consistent with our strategic focus on production applications.

Service revenue, which includes Stratasys Direct parts production was $44.9 million compared to $43.3 million in the same period last year. Within service revenue, customer support revenue was $29.9 million, roughly flat compared to the same period last year, while Stratasys Direct grew 12.1% year-over-year, continuing to contribute positively to our results.

Turning to gross margin. GAAP gross margin was 42.3% for the quarter compared to 43.1% in the same period last year. Non-GAAP gross margin was 47.2% for the quarter compared to 47.7% in the same period last year, driven by the adverse impact of the strong Israeli shekel in which many of our expenses are incurred, partially offset by the contribution of higher consumables revenue margins and an improvement from 46.3% last quarter. GAAP operating expenses were $71.7 million compared to $76.1 million during the same period last year.

Non-GAAP operating expenses were $64.8 million or 47.1% of revenue, roughly flat compared to 46.9% of revenue in the same period last year, reflecting continued disciplined expense management.

Regarding our consolidated earnings. GAAP operating loss for the quarter was $13.5 million compared to a loss of $16.6 million for the same period last year. Non-GAAP operating income for the quarter was $0.1 million compared to $1.1 million for the same period last year. GAAP net loss for the quarter was $16.9 million or $0.19 per diluted share compared to a net loss of $16.7 million or $0.20 per diluted share for the same period last year.

Non-GAAP net income for the quarter was $2.3 million or $0.03 per diluted share compared to non-GAAP net income of $2.2 million or $0.03 per diluted share in the same period last year. Adjusted EBITDA was $5.3 million for the quarter compared to $6.1 million in the same period last year and an improvement from $2 million last quarter. Important to note that both non-GAAP operating income and EBITDA increased compared to the same period last year after excluding the $2.9 million adverse impact of the strong Israeli shekel in the quarter.

Turning to cash flow. We used $18.7 million in operating cash flow this quarter. The company historically generates positive operating cash flow as reflected in full-year 2024, 2025 and in Q1 2026. The cash usage this quarter was atypically high and was mainly driven by non-routine items, including legal expenses to proactively protect our IP. Importantly, we expect operating cash flow in the second half of the year to be positive. We ended the quarter with $212.5 million in cash, cash equivalents and short-term deposits compared to $237.8 million at the end of the first quarter.

Regarding our outlook for 2026, we are reaffirming our full-year guidance other than operating cash flow. We are energized by our strong pipeline of business and robust level of customer engagement and continue to expect sequential growth in revenue across all 4 quarters of the year. Given the first half operating cash flow results, we no longer expect full-year 2026 operating cash flow to be positive. However, as just mentioned, we expect the second half of the year to be positive. Our debt-free balance sheet and healthy cash position give us the added financial flexibility and position of strength to support technology and market development, both organically and inorganically to spur further growth.

With that, let me turn the call back over to Yoav for closing remarks. Yoav?

Yoav Zeif

Thank you, Eitan. As we look ahead, we do so with confidence in our strategy and in the durability of the megatrends driving additive manufacturing adoption. We are successfully executing on our stated goal to transform our business as we shift the bulk of our business from prototyping to manufacturing.

The annual growth of manufacturing-based revenue is supported by the metric we share when we report each year-end. We are making steady progress and as demonstrated by the examples we have shared to-date, this focus on manufacturing will result in a significantly more robust company as we continue to become a larger part of our customers' critical production line infrastructure.

The multiunit, multiyear wins we described with large global companies are the result of the increasing enthusiasm and usage of additive manufacturing in production. Customer engagement remains strong. Our pipeline of business is expanding. And while the magnitude of the commitments we are securing tends to carry long sales cycle and add variability quarter-to-quarter, the many opportunities emerging will generate a sales flywheel to propel increased growth in the coming years.

Combined with a healthy balance sheet, the foundation and path forward for profitable growth is evident. Our continued momentum in aerospace, defense and automotive, the anticipated impact from our dental business and the ongoing contribution from Stratasys Direct reinforce the structural demand we see across our key verticals as we look to build long-term value.

With that, let's open it up for questions. Operator?

Operator

[Operator Instructions]. The first question comes from the line of Greg Palm with Craig-Hallum.

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Jackson Schroeder

This is Jackson Schroeder on for Greg Palm. Just wanted to touch on -- first of all, congrats on the acquisition. I wanted to see -- we're seeing a lot of demand within A&D coming from metals based additive manufacturing. And with this new carbon fiber capability that you have here, I wanted to just see what your outlook is for that business and how it fits in strategically. Then also if you could touch on the $70 million in revenue, what the kind of revenue profile is on that? And if there's anything that you expect to kind of strategically trim or I guess, what you're going to do with that business and how that kind of works in the portfolio.

Yoav Zeif

Thank you, Jackson, for the question. It's a very important one in terms of our position in aerospace and defense. So let me take a step back and a few sentences on the deal rationale with MarkForged. There are very clear 5 pillars why we have done it.

Number one is the unique continuous carbon fiber technology that they developed over the year. It's by far the leading one. And we believe that together with Stratasys long-term reliability standards and positioning in aerospace and defense, it's a win. This is the first pillar.

The second one is about the use cases. They are completely aligned with our use cases. In additive, it's all about applications, and they are completely in line with ours. Our #1 is aerospace and defense and #2 is tooling, in the industrial space, they are focusing on the same, complete alignment with huge synergies, technological synergies. So that's the second one, the use case.

The third one is the go-to-market. We have the leading network of partners in the market, and they are #2. And they are not in the same markets because they are in different markets. We are in the more corporate high end, and they are bringing us the shops and medium-level businesses, which is a clear synergy. Then we are talking about software. They developed a unique software, including simulation, but also the ability to manage distributed manufacturing. Together with our leading GrabCAD, it's another win.

Add to it is the fifth pillar, the talent that we are receiving. Those are the best engineers in our industry, and they are joining Stratasys, and that will really strengthen our position in the high-end, high requirements.

Now to your question, you mentioned metal, continuous carbon fiber can replace metal. It's lighter, it's less expensive. It significantly requires less post processing, which is a huge advantage. And just as a proof point, since we announced the deal and since we are interacting with many aerospace and defense players that now are coming to us, I received 4 requests from large corporates to collaborate with us on helping them adopting continuous carbon fiber and continuous carbon fiber standards because Stratasys knows how to do it as a replacement for metal. So I'm very positive about it, and it looks really promising.

Jackson Schroeder

Awesome. Then can you just talk a little bit more about -- you mentioned dental right at the end there. Just what the outlook is on that market and how that's trending?

Yoav Zeif

Dental, this is like the secret card that we have in a sense. We are very excited about the dental industry and about our solution with all modesty, we are developing the most innovative solution for removables by far. And you will see it in the market. We have already for the first version FDA in Europe, European approvals. Long-term opportunities are coming every day, we hire the top talent in dental and probably increased cables, and it is transforming the way we are thinking about dental -- sorry, about dental and the way we are going to the market. And most importantly, we get the recognition from the leading customers. So we're already working with labs like Clyde Caldwell and Affordable dentures, which are 2 of the largest dental companies in the U.S. So it's a massive opportunity. Stay tuned. We will come back with what's going on with dental.

Operator

Next question is from the line of Brian Drab with William Blair.

Brian Drab

I don't know what time it is there exactly. I listened to the call and there's a lot of momentum. There's a lot of exciting things going on. But then I just wanted to hear your thoughts on just the system sales because it seems like the manufacturing environment is improving for a lot of companies, seeing some momentum building this year. But the system sales, I think, were down sequentially. And they really -- we still haven't turned the corner in terms of improved system sales.

The system sales are down from last year for a second quarter, and they're even down from 2 years ago in the second quarter, and they're down sequentially from the first quarter, right, whereas historically, Stratasys has seen at least a little bit of improvement, I think, in the second quarter from the first quarter. I know there's a lot of positive things going on, but I'm just wondering when do you think that, that system sales starts to inflect?

Yoav Zeif

Thank you, Brian, for the question. And by the way, we are on the same time zone. We are in Minnesota. Great question. I think the most important thing to state now is that we are on track, and we are keeping our guidance of sequential growth quarter-over-quarter. That's the most important thing.

Now about systems, this is part of what we are experiencing in the shift to manufacturing. We are according to track, but we have a pipeline, a robust pipeline of large deals and large deals, it's not something that is distributed across the quarter, exactly as you want it. We know our pipeline, it's robust. It consisted of large deals. And it's better to measure our growth trend annually given the fact that we are moving to large deals and to manufacturing. And as a proof point, you can see the 2 large deals that we have done this quarter with 2 leading players. So this is a change in the nature of the business.

When you look at the second half of the year, you will see a notable uptick in system sales.

Brian Drab

I didn't miss the nice increase sequentially in consumable sales, so that was very impressive.

Operator

[Operator Instructions]. At this time, showing no additional questions. I'll turn the floor back to Yoav for any further comments.

Yoav Zeif

Maybe one comment before we are concluding. We are moving into manufacturing. We are on the right track in the shift from prototyping to manufacturing. We have many proof points for that, starting with our A&D set of success and demand. The A&D business is coming with large deals. We have a robust pipeline of those large deals. SDM is proving it because we have the highest backlog ever in SDM. And this is our way into this aerospace and defense because we are supplying also capacity.

Consumables is another indicator. We are historically in a record high of consumables, mainly because of high-performance materials. Take the SDM, they produced over 12,000 parts for aerospace and defense, mainly drones. They are dealing with the 10 top drones players. And we are going to invest in this capacity in penetration into aerospace and defense, and we have the financial stress. So we are there. We are moving to manufacturing. It will be a different company, and we are happy to share it with the investors.

Thank you for joining us. We look forward to update you again next quarter.

Operator

Thank you. This will conclude today's conference. You may now disconnect your lines at this time. We thank you for your participation.