Amprius Technologies, Inc. (AMPX) Earnings

Management highlights

### Demand and Market Opportunities - Robust demand continues for Amprius' high-energy-density silicon anode lithium-ion batteries, with record Q2 revenue. Second-generation Psi-Core cells see strong adoption for drone applications, with growing momentum in both defense and commercial drone markets. - The U.S. DoD 2027 proposed budget includes a 24,000% year-over-year increase in spending for drone and autonomous warfare capabilities; Amprius is positioned to benefit via its existing Defense Innovation Unit contract, and half of the 19 participants in the upcoming DoD Drone Dominance Program competitive demonstration use Amprius cells. The DoD plans to order 60,000 drones from top performers after the event. - A new $24 million order was received from a European drone manufacturer, with deliveries starting in Q2 2026 continuing through the next three quarters. Long-time customer Redwire secured over $40 million in U.S. Marine Corps orders for Stalker Block 30 drones, which use Amprius' long-endurance cells. - Beyond drones, Amprius secured a three-year contract with Barcelona-based premium electric motorcycle manufacturer Stark Future, with expected total revenue of at least $100 million through 2029 and shipments starting in early 2027. The company also holds a $21 million order from a Chinese light electric vehicle customer. - Early exploration is underway in new high-potential segments: robotics (focused on unstructured environment applications), satellites (weight reduction improves launch economics), eVTOL aircraft, and data center peak power support. ### Go-To-Market Strategy - Approximately 50% of sales go directly to over 500 end-use customers (drone makers, small EV manufacturers, satellite sector participants). The remaining 50% comes through the PAC (Pack Partner) program, where partners integrate Amprius cells into complete modules and packs for end customers. This program allows Amprius to scale sales without adding proportional direct sales headcount, creating a flywheel growth effect. Nine partners are currently listed on the company website, with more to be added. ### Manufacturing and Supply Chain - Amprius follows a capital-efficient contract manufacturing strategy: the Fremont, CA pilot line supports customer development, small-volume sales, and rapid material qualification, while volume production is handled by global manufacturing partners. - Four long-standing contract manufacturing partners in China continue to serve as core partners. Three partners have now been added in South Korea (Libest, JR Energy, Top Material), enabling current NDAA-compliant battery production. U.S. partner Nanotech Energy provides additional domestic capacity, with more U.S. partnerships expected to be announced soon. The company remains on track to achieve full U.S.-domestic NDAA compliance for all cell production by 2027. - The NDAA-compliant pilot line expansion funded by the Defense Innovation Unit (total contract value now $18.1 million) is progressing: nearly half of required equipment has been received and is being installed, with all equipment expected by September 2026 and production starting in December 2026. ### Organizational Updates - Long-time VP of Sales Ronnie Tao was promoted to Chief Business Officer, leading expansion into new segments starting with robotics. Ann Torricelli, a 20-year veteran of energy technology sales, joined as the new VP of Sales from top global lithium-ion battery maker Goshen.

Guidance

- Full year 2026 guidance has been raised for the second consecutive quarter: management now expects at least $140 million in total revenue (up from prior guidance of >$130 million, which was up from the initial March guidance of >$125 million) and gross margins of at least 28% (up from prior expectations). - 2026 adjusted EBITDA guidance is reiterated at more than $4 million, with a full-year net loss of $10 million or less and diluted loss per share of 8 cents or less. - Long-term targets (unchanged from prior plans, with visibility improved) remain for >$600 million of contracted capacity, gross margins above 30%, and adjusted EBITDA margins of at least 20% by the end of the 2020s. Management noted that hitting the 30%+ gross margin target could potentially be pulled ahead to 2029 if current favorable trends continue, but maintained the original 2030 target to account for NDAA compliance transition costs.

Segment performance

Amprius reported Q2 2026 total revenue of $34 million, representing 19% sequential growth from Q1 2026 and 130% year-over-year growth (2.3x). This marked the sixth consecutive quarter of sequential revenue growth, bringing the first half 2026 total revenue to $62.6 million, up 137% year-over-year, and putting the full-year 2026 annual revenue run rate at $136 million. Psi-Core silicon anode cells accounted for 98% of Q2 2026 total revenue. Regionally, EMEA contributed 68% of Q2 revenue, with the remaining 32% split between the U.S. and Asia. Gross profit for Q2 was $9.3 million, with a gross margin of 27%, improving from 20% in Q1 2026 and 9% in Q2 2025. First half 2026 gross margin reached 24%, up from -4% in the first half of 2025. Operating loss in Q2 was $4.3 million, narrowing from $6.7 million in Q1 2026 and $6.8 million in Q2 2025. GAAP net loss attributable to common shareholders was $5.1 million (-$0.04 per diluted share), 20% narrower than Q2 2025. Non-GAAP adjusted EBITDA for Q2 2026 was -$1 million (-3% margin), with a trailing 12-month adjusted EBITDA of -$800,000 (-1% margin), near breakeven.

Risks & headwinds

- U.S. Congress has not yet passed the 2027 defense budget, and final approved spending for autonomous drone programs may be lower than the administration's proposed request. - NDAA compliance requires qualifying and contracting new suppliers for all battery components, which involves administrative and operational complexity that could delay full compliance if not managed properly. - Gross margins may see temporary, modest dips in some quarters as the company transitions to higher North American revenue share and incurs transition costs for full NDAA compliance. - Longer-term lead times (1-2 years) are required to set up new NDAA-compliant production capacity, and misalignment between capacity expansion and demand growth could leave demand unmet or create excess costs. - Early stage new segments (robotics, data centers, eVTOL) have not yet generated meaningful revenue, and market adoption may take longer than expected.

Analyst Q&A

• Q: The analyst asks about Amprius' technical ability to qualify new suppliers for NDAA compliance and adapt its chemistry platform to integrate new material inputs, and whether the company is moving toward semi/fully solid state electrolytes. /

  A: Management confirms Amprius maintains five chemistry platforms (power, energy, balanced, etc.) and has significant dexterity to adapt. 11 new suppliers for all core battery components (anode, cathode, separator, binders) have already been qualified, with primary and backup supply chains established. These are being integrated into South Korean and U.S. production, and the Fremont pilot line enables rapid validation of new components. The company remains on track for full U.S. NDAA compliance in 2027. (212 characters)

• Q: What is driving the confidence to raise both revenue and gross margin guidance for 2026? /

  A: Revenue guidance was raised due to stronger, more consistent order flow from pack partners and OEMs that gives clear visibility into second half 2026 demand, with even existing upside to the new guidance. Margin guidance was raised because after removing one-time Q1 Colorado facility costs and first-half tariffs (that have since been refunded), first half 2026 margins would have already hit 27%. Management also confirmed that contract manufacturing fixed costs will not scale proportionally with higher volume in the second half, and the favorable current mix of high-margin European pouch sales is expected to continue for the rest of the year. (337 characters)

• Q: What is Amprius' approach to domestic U.S. pouch cell manufacturing as stricter NDAA requirements take effect in 2027-2028, and will the company purchase idle existing EV battery capacity? /

  A: Management confirms the company is actively pursuing U.S.-based pouch manufacturing partnerships and there is significant idle EV battery capacity available, aligned with analyst thinking. Amprius' capital-light model means it will not purchase facilities directly; all U.S. expansion will be done with partner-owned facilities. Repurposed existing capacity requires only one-third of the capital expenditure of building new capacity, and the payback period for required equipment upgrades can be as short as 2-3 years if capacity is fully utilized. (321 characters)

• Q: What positioning is Amprius doing to capture share in the emerging commercial robotics market as it scales? /

  A: Management explains that the company recently entered the robotics market and attended its first industry trade show to build market understanding. Amprius' cells are particularly well-suited for robots operating in unstructured environments (such as legged robots and humanoids) that require both high energy density for long run time between charges and high power delivery for peak load lifting. The new CRO position is focused on identifying high-value use cases, developing customer relationships, and turning early opportunities into future revenue as the market scales. (308 characters)

• Q: What is the expected lag between approval of the 2027 U.S. defense budget and flow-down of orders to Amprius? /

  A: Management confirms there will be a measurable lag based on past experience. Based on the 2026 defense budget cycle, where order flow to Amprius came 6-9 months after budget availability, if the 2027 budget is approved by December 2026, initial order flow is not expected until mid-2027, with additional orders following after that. While the full requested 24,000% spending increase may not be fully approved, even partial increases represent substantial growth opportunity for the company. (284 characters)