Amprius Technologies (AMPX) Q3 2025: Backlog Surges 83% as Defense Demand Accelerates Battery Adoption

November 6, 2025 | By EarningsIQ Research

Amprius Technologies delivered a record Q3, with backlog up 83% and a notable step-change in customer wins, driven by accelerating demand for high-performance silicon anode batteries in defense and aerospace. Margin gains, robust contract manufacturing capacity, and a deepening U.S. government partnership signal a business model built for scale, but lumpiness and tariff volatility remain near-term realities. Management’s focus on product mix, supply chain resilience, and qualification of NDAA-compliant materials sets the stage for further expansion into mission-critical markets.

Summary

• Backlog Expansion Signals Demand Visibility: Near-term orders climbed sharply, reflecting large repeat deals and a broadening customer base.
• Margin Trajectory Driven by Product Mix: Gross margin improvement was powered by increased shipments of high-value SciCore cells.
• U.S. Defense Momentum Accelerates: Deeper government engagement and DIU funding support domestic capacity and future contract wins.

Performance Analysis

Amprius Technologies posted record quarterly revenue, with top-line growth fueled by both new and repeat customers, and a sharp increase in large-volume orders from the unmanned aerial systems (UAS) segment. The company shipped to 159 end customers during the quarter, nearly doubling the pace of new customer acquisition versus prior periods, and expanded its cumulative customer count to 444 since early 2023. Notably, 75% of Q3 revenue originated from aviation, with the balance from the light electric vehicle (LEV) sector, underscoring the company’s concentration in high-value aerospace applications.

Gross margin improved to 15%, up from 9% last quarter, driven by a favorable shift toward SciCore, Amprius’s proprietary silicon anode battery platform. The company continues to benefit from a capital-light manufacturing model, leveraging over 1.8 GWh of third-party capacity, which equates to roughly 50 million cells per year. Operating expenses remained disciplined, and adjusted EBITDA loss narrowed significantly, reflecting both scale and cost focus.

• Backlog Surge: Orders stood at $53.3 million, up 83% sequentially, including a $35 million follow-on from a leading UAS manufacturer.
• Customer Diversity: Only one customer accounted for more than 10% of revenue, with 75% of sales from outside the U.S., signaling broad market traction.
• Margin Leverage: SciCore shipments rose more than 4x YoY, supporting margin expansion despite ongoing mix and contract manufacturing variability.

Cash burn was primarily working capital driven, with $73.2 million in cash and no debt on the balance sheet, further bolstered by $25.9 million raised via at-the-market equity sales. The company’s path to EBITDA and cash flow breakeven is now within visible reach, contingent on incremental revenue and continued product mix improvement.

Executive Commentary

Strategic Positioning

1. Defense and Aerospace as Core Growth Engine

Amprius’s business is increasingly anchored in the UAS and broader defense sector, with 75% of revenue tied to aviation and multiple large, repeat contracts from leading drone manufacturers. The company’s technology—offering up to 450 Wh/kg and ultra-fast charge—has become a critical differentiator, enabling drone platforms to double flight time and payload. The U.S. Army’s Extech Prime and Defense Innovation Unit (DIU) contracts not only validate the technology but also provide funding for domestic capacity expansion and supply chain qualification.

2. Capital-Efficient Manufacturing Model

By leveraging contract manufacturing partners with over 1.8 GWh of available capacity, Amprius avoids the capital intensity and ramp risk of traditional battery scaling. The SciCore platform’s compatibility with standard lithium-ion processing lines allows for rapid scaling and flexible geographic diversification, including newly added partners in South Korea and plans for NDAA-compliant U.S. lines. This approach supports both margin expansion and resilience to trade and tariff shocks.

3. Product Innovation and Customer Qualification Flywheel

The introduction of five new SciCore SKUs and a strong pipeline of ongoing product qualifications have accelerated customer adoption and repeat business. Amprius’s batteries are now integrated into high-profile drone and electric aircraft programs, with customers reporting up to 90% longer flight endurance. The company’s ability to meet rigorous international safety and military standards further enhances its competitive moat, especially as regulatory tailwinds (e.g., U.S. executive orders on domestic drones) drive market growth.

4. Supply Chain and Regulatory Adaptation

Amprius is proactively qualifying NDAA-compliant materials and expanding U.S. electrode manufacturing to meet evolving defense procurement requirements. The DIU contract funds a Fremont pilot line, with the goal of qualifying all key battery components for domestic production by next summer. This initiative positions Amprius to capture future government contracts and mitigate risks from shifting trade policy or supply chain disruptions.

Key Considerations

This quarter marks a pivotal inflection for Amprius, as backlog growth, customer wins, and margin improvement converge to validate the company’s differentiated technology and capital-light business model. However, the path forward is not without volatility, as revenue mix, customer order cadence, and global trade dynamics introduce near-term unpredictability.

Key Considerations:

• Repeat Order Momentum: Large follow-on deals, such as the $35 million UAS contract, highlight the company’s ability to convert initial wins into scaled deployments.
• Margin Upside Tied to SciCore Mix: Further product mix shift toward SciCore and higher utilization of contract capacity are critical levers for reaching 20%+ gross margins.
• Defense and Public Safety Tailwinds: Policy changes and increased government funding are accelerating demand for domestic, high-performance batteries.
• Tariff and Regulatory Exposure: The company’s global revenue footprint and reliance on overseas manufacturing expose it to ongoing tariff and compliance risks, though supply chain diversification efforts are underway.
• Visibility to Cash Flow Breakeven: With incremental revenue, Amprius is positioned to achieve positive adjusted EBITDA and approach cash flow breakeven, given disciplined OpEx and minimal CapEx requirements.

Risks

Amprius faces several execution and market risks, including lumpiness in customer order timing, margin volatility driven by product and geographic mix, and exposure to tariffs and shifting U.S. trade policy. A portion of future growth depends on successful qualification of NDAA-compliant materials and continued U.S. government funding, both of which are subject to regulatory and budgetary uncertainty. Additionally, the company’s ability to convert its large contracted capacity into sustained high-margin revenue remains a key operational challenge.

Forward Outlook

For Q4 2025, Amprius expects:

• Continued revenue growth, supported by a robust $53.3 million order backlog and new customer ramps.
• Gross margin to remain variable, with further improvement tied to SciCore mix and contract manufacturing utilization.

For full-year 2025, management maintained a focus on:

• Scaling contract manufacturing and diversifying the supply chain, especially for defense and NDAA-compliant applications.
• Advancing the Fremont pilot line and qualifying all key battery components for domestic production by mid-2026.

Management emphasized that incremental revenue and product mix improvements could deliver positive adjusted EBITDA and set the stage for cash flow breakeven, with further updates pending order fulfillment cadence and regulatory developments.

Takeaways

Amprius’s Q3 results demonstrate a business crossing from technology validation to commercial scale, with defense and aerospace serving as the primary growth vectors.

• Backlog and Customer Flywheel: A sharp rise in near-term orders and repeat business validates Amprius’s product-market fit and ability to scale with minimal capital intensity.
• Margin and Mix Progress: Gross margin expansion is real but will remain lumpy, as product and customer mix, along with contract manufacturing utilization, introduce variability.
• Defense-Driven Expansion: Ongoing U.S. government engagement and NDAA-compliant supply chain initiatives position Amprius to capture a growing share of the mission-critical battery market.

Conclusion

Amprius Technologies enters Q4 with strong momentum, a record backlog, and clear evidence of scaling in high-value defense and aerospace markets. While near-term volatility is likely, the company’s differentiated technology, capital-light model, and deepening government relationships form a foundation for durable growth and eventual profitability.

Industry Read-Through

Amprius’s Q3 is a leading indicator for the broader advanced battery sector, particularly as defense and aerospace customers seek domestic, high-performance solutions amid rising geopolitical and regulatory scrutiny. The company’s success with contract manufacturing and rapid product qualification highlights a viable path for others facing capital constraints. Policy tailwinds, such as U.S. executive orders favoring domestic drone production and increased defense spending, are likely to benefit peers with similar compliance and technology credentials. Investors should watch for further consolidation around suppliers that can deliver both scale and compliance in a dynamic global trade environment.

AMPX Industrials Batteries Defense Contract Manufacturing Growth Margin Supply Chain