Provisions

12 Months Ended

Dec. 31, 2025

Provisions.

Provisions

(14) Provisions

- Accounting principles -

Provisions are recognized if as a result of past events, the Group has:

–

a present legal or constructive obligation,

–

the amount can be estimated reliably, and,

–

it is more likely than not that an outflow of resources will be required to settle the obligation.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money.

A provision for onerous contracts is recognized when the expected benefits to be derived by the Group from such a contract are lower than the unavoidable expenses of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected expenses of terminating the contract and the expected net expense of continuing with the contract. Before a provision is established, the Group recognizes any impairment expense on the assets associated with that contract.

Reorganization provisions are recognized when the Group has a constructive obligation, which is when:

–

there is a detailed formal plan that identifies the business or parts of the business concerned, the location and number of employees affected, the detailed estimate of the associated costs, and the timeline; and

–

the employees affected have been notified of the plan’s main features.

- Provision -

The current provisions consist of the following:


		December 31,		December 31,
in k€		2025		2024
Other personnel expenses		38,786		31,317
Pensions		997		1,572
Other provisions		13,296		9,858
Reorganization		5,464		19,473
Total current provisions		58,543		62,219

The non-current provisions consist of the following:


		December 31,		December 31,
in k€		2025		2024
Pensions		10,312		10,223
Other personnel expenses		1,232		1,315
Other provisions		3,174		2,918
Reorganization		3,317		5,128
Total non-current provisions		18,035		19,585

The following table summarizes the development of total provisions recorded during 2025:


						Divestment		Foreign		Remeasurement
		Jan 1,				of affiliated		currency		through						Dec 31,
		2025		Additions		companies		exchange		OCI		Consumption		Release		2025
		in k€		in k€		in k€		in k€		in k€		in k€		in k€		in k€
Other personnel expenses		32,632		34,821		1,876		(1,217)		—		22,342		2,000		40,018
Pensions		11,795		6,818		418		(18)		(720)		6,148		—		11,309
Other provisions		12,776		25,136		290		(262)		—		16,420		4,470		16,470
Reorganization		24,601		1,094		—		(252)		—		15,266		1,396		8,781
Total		81,804		67,869		2,584		(1,749)		(720)		60,176		7,866		76,578

The following table summarizes the development of total provisions recorded during 2024:


						Divestment		Foreign		Remeasurement
		Jan 1,				of affiliated		currency		through						Dec 31,
		2024		Additions		companies		exchange		OCI		Consumption		Release		2024
		in k€		in k€		in k€		in k€		in k€		in k€		in k€		in k€
Other personnel expenses		43,654		21,823		219		477		—		31,284		1,820		32,632
Pensions		14,170		3,248		12		22		(1,217)		2,694		1,721		11,795
Other provisions		3,404		23,785		757		189		—		11,723		2,123		12,776
Reorganization		—		68,459		36		69		—		32,291		11,599		24,601
Total		61,228		117,315		1,024		757		(1,217)		77,992		17,264		81,804

The provision for personnel expenses mainly consists of bonus accruals (December 31, 2025: €22,938k; December 31, 2024: € 9,662k) and accrued vacation (December 31, 2025: € 14,447k; December 31, 2024: € 17,018k). The provision for pensions mainly relates to pensions in France (see Note 13).

The other provisions mainly consist of litigation and indemnification obligations (December 31, 2025: € 7,156k; December 31, 2024: € 497k), of accrued audit fees (December 31, 2025: € 3,254k; December 31, 2024: € 3,675k) as well as restoration provisions (December 31, 2025: € 3,174k; December 31, 2024: € 2,823k). In accordance with IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ (paragraph 92), no further information is disclosed so as not to prejudice Evotec’s position.

In April 2024, the Group announced that it was currently assessing its current footprint and activities. As of December 31, 2025, the Group has a remaining provision to cover the expected and estimated costs associated with the remaining reorganization efforts of its activities in the countries in which it operates. The reorganization provision mainly consists of obligations related to vacated lease assets in the UK (December 31, 2025: € 4,253k; December 31, 2024: € 4,778k) as well as employee termination benefits in France (December 31, 2025 € 3,343k; December 31, 2024: € 7,976k).