Amprius’ core business model is differentiated by its capital-light, contract manufacturing approach and proprietary silicon anode technology, which currently deliver superior energy density for demanding applications. The company’s defensibility is underpinned by regulatory compliance (NDAA), deep…
Amprius Technologies (AMPX) Q2 2026: Gross Margin Climbs to 27% as Defense and EMEA Demand Accelerate
Amprius Technologies delivered its sixth straight quarter of sequential growth, lifting gross margin to 27 percent and raising full-year guidance again as defense and European demand for its high-density silicon anode batteries surged. The company’s capital-light contract manufacturing model and expanding pack partner ecosystem are driving rapid scale and margin improvement, while NDAA compliance and U.S. manufacturing remain a strategic focus. Investors should watch for how Amprius navigates supply chain localization, margin mix, and emerging verticals like robotics and data centers in the coming quarters.
Summary
- Margin Expansion Anchored in Contract Manufacturing: Capital-light partnerships and favorable mix drove a step-change in profitability.
- Defense and International Demand Fuel Top-Line Visibility: EMEA and U.S. defense channels underpin strong order flow and revenue guidance raise.
- Strategic Focus on NDAA Compliance and Vertical Diversification: Progress in U.S. supply chain, robotics, and e-mobility set up new growth vectors.
Business Overview
Amprius Technologies designs and manufactures advanced silicon anode lithium-ion batteries, supplying high energy density cells primarily for drones, light electric vehicles, robotics, satellites, and emerging aviation applications. The company monetizes through direct sales to over 500 end customers and a growing network of pack partners, leveraging a contract manufacturing model across China, South Korea, and the U.S. Its SciCore silicon anode platform accounts for the vast majority of revenue, with defense and commercial drone markets currently leading demand.
Performance Analysis
Amprius posted record revenue for Q2 2026, up 19 percent sequentially and more than doubling year over year, marking its sixth consecutive quarter of sequential growth. The SciCore product line contributed 98 percent of revenue, with EMEA representing 68 percent of the quarter’s sales mix, underscoring the strength of international demand. Gross margin improved sharply to 27 percent, up from 20 percent in Q1 and 9 percent in the prior year period, reflecting improved product mix, reduced tariff costs, and better absorption of manufacturing partner fixed costs.
The company’s operating loss narrowed to $4.3 million, and adjusted EBITDA for the quarter was negative $1 million, with a trailing twelve-month margin nearly breakeven. Cash operations turned positive before working capital movements, and Amprius ended the quarter with $74.5 million in cash and no debt. Receivables and inventory increased to support the accelerating shipment profile, but management expressed confidence in collections and working capital discipline.
- International and Defense Mix Drives Growth: EMEA and defense contracts are the primary engines of current revenue acceleration.
- Margin Expansion Reflects Mix and Tariff Relief: Higher share of accretive pouch sales and tariff refunds contributed to margin gains.
- Capital-Light Model Preserves Flexibility: Contract manufacturing partnerships in China and Korea enable rapid scale with minimal capex.
Amprius’ ability to raise guidance for the second consecutive quarter signals robust demand visibility, though future margin and mix will hinge on continued execution and regional supply chain evolution.
Executive Commentary
"We believe the characteristics of our cells make them a particularly strong fit. Our second generation side core silicon anode battery continues to gain broad adoption for drones and other applications. Given the strong quarter and promising new business, we have the confidence to increase our 2026 revenue forecast for the second consecutive quarter."
Tom Stepien, CEO
"For the first half of the year, revenue was of $62.6 million, up 137% year-over-year. SciCorps accounted for 98% of our revenue in Q2. Regionally, EMEA drove 68% of our revenue, with the rest of our revenue coming from the U.S. and Asia. Cost of goods sold was $24.8 million, up 9% against 19% revenue growth. That enabled gross profit of $9.3 million and the gross margin of 27%, right in line with our expectations and improving from 20% in the first quarter and 9% in the same quarter last year."
Ricardo Rodriguez, CFO
Strategic Positioning
1. Capital-Light Manufacturing Model
Amprius’ reliance on contract manufacturers (CMs) in China, South Korea, and the U.S. avoids heavy capex, enabling rapid response to demand surges and preserving strategic flexibility. This model allows Amprius to scale output and diversify supply without the burden of building and owning new plants, and to quickly align with NDAA (National Defense Authorization Act) compliance requirements for U.S. defense customers.
2. Defense and Commercial Drone Tailwinds
Military and commercial drone adoption is in early innings, with the U.S. Department of War’s Drone Dominance Program and European contracts driving large, multi-year opportunities. Amprius’ technology is already present in half of the DDP’s competitive demonstration drones, and new European wins, such as a $24 million order, are expanding the company’s international footprint.
3. Margin Expansion Through Mix and Process Discipline
Gross margin improvement is being driven by a favorable mix of high-margin pouch sales, tariff relief, and fixed cost discipline with contract partners. Management expects further upside as NDAA-compliant products scale and as the company leverages its size to negotiate more favorable terms with suppliers and partners.
4. Vertical and Geographic Diversification
Amprius is expanding beyond drones into e-mobility (light electric vehicles), robotics, satellites, and EVTOL (electric vertical takeoff and landing) aircraft, with recent wins like a three-year, $100 million contract with Stark Future and early moves into robotics and data center battery applications. This diversification reduces reliance on any single market and opens new growth vectors.
5. Supply Chain Localization and NDAA Compliance
Progress on qualifying U.S. and Korean suppliers for NDAA compliance is critical for future defense and government contracts. Amprius is on track for full U.S. NDAA-compliant production by 2027, with ongoing negotiations for pouch cell manufacturing partnerships in the U.S. to further localize supply and reduce tariff and logistics risks.
Key Considerations
Amprius’ quarter reflects strong execution in scaling sales, expanding gross margin, and deepening its competitive moat in high-growth battery applications. However, the company’s future trajectory will depend on its ability to balance rapid growth with supply chain localization, margin management, and the successful commercialization of new verticals.
Key Considerations:
- Defense Spending Inflection: Pentagon and allied defense budgets for drones are expanding, but the timing and magnitude of order flow remain subject to government approval cycles.
- Margin Sensitivity to Product and Regional Mix: High-margin pouch sales and favorable EMEA mix are driving current results, but shifts toward lower-margin cylindrical or China-based sales could pressure profitability if not managed.
- Pack Partner Ecosystem as a Force Multiplier: The growing network of pack partners enables Amprius to scale distribution and serve fragmented end markets with minimal incremental sales headcount.
- NDAA Compliance as a Competitive Differentiator: Early and aggressive investment in U.S. and Korean supply chain compliance positions Amprius to win contracts as domestic sourcing rules tighten.
- Emerging Verticals Offer Optionality: Early traction in robotics, satellites, and data centers could unlock new growth, but these are not yet material contributors and will require continued technical and commercial development.
Risks
Amprius faces risks from supply chain complexity, including delays in qualifying new NDAA-compliant suppliers, as well as potential margin pressure if regional or product mix shifts unfavorably. Government budget cycles and regulatory changes could impact defense order timing, while competition in both defense and commercial battery markets remains intense. Rapid expansion into new verticals such as robotics and data centers may stretch operational focus and execution bandwidth.
Forward Outlook
For Q3 2026, Amprius guided to:
- Continued sequential revenue growth with a strong EMEA and defense mix
- Gross margin improvement driven by mix and operational leverage
For full-year 2026, management raised guidance:
- Revenue of at least $140 million (up from $130 million previously)
- Gross margin of at least 28 percent (up from 25 percent)
- Adjusted EBITDA of more than $4 million
- Net loss of $10 million or less
Management cited robust demand visibility, improved order flow from pack partners and OEMs, and ongoing cost discipline as key drivers of the outlook. The company reiterated its long-term targets of $600 million contracted capacity, gross margins above 30 percent, and adjusted EBITDA margins of at least 20 percent by decade end.
- Defense and EMEA mix expected to remain favorable in H2 2026
- Further progress on U.S. NDAA-compliant supply chain and new verticals anticipated
Takeaways
Amprius is executing on a high-velocity growth strategy, with margin expansion and operational leverage now visible in quarterly results. The company’s focus on capital-light scaling, NDAA compliance, and ecosystem partnerships positions it well for continued market share gains, but investors should watch for shifts in mix and competitive dynamics as new verticals ramp.
- Margin Expansion Validates Model: Gross margin gains and sequential revenue growth reflect the benefits of Amprius’ contract manufacturing and pack partner strategy, but sustaining these gains will require continued discipline as volumes scale and mix evolves.
- Defense and EMEA Demand Anchor Visibility: Large defense budgets and EMEA orders provide a strong base, but order timing and government approvals remain a wild card for future quarters.
- New Verticals Offer Upside, Not Yet Material: Robotics, data centers, and e-mobility represent optionality for future growth, but require ongoing investment and proof of commercial traction.
Conclusion
Amprius’ Q2 2026 results demonstrate the company’s ability to scale rapidly, expand margins, and deepen its competitive position in high-growth markets. Sustained execution on supply chain localization, margin management, and vertical expansion will be critical to maintaining momentum as the battery landscape evolves.
Industry Read-Through
Amprius’ results underscore a broader inflection in battery demand tied to defense, drone, and e-mobility applications, with regulatory-driven supply chain localization (NDAA compliance) now a material competitive lever. Margin sensitivity to product and regional mix is a key theme for all advanced battery players, especially as global supply chains bifurcate and customers demand both technical performance and compliance. Capital-light manufacturing partnerships are proving to be a scalable model, suggesting that asset-heavy approaches may face increasing scrutiny as markets shift toward speed and flexibility. Emerging verticals like robotics and data centers are in early stages, but players that can rapidly adapt their chemistry and supply chain to meet new requirements are positioned to capture disproportionate share as these markets mature.