Canada Post posts Q1 loss as revenue, volumes fall across all business lines

Canada Post recorded a $205-million loss before tax in the first quarter of 2026 as revenue and volumes declined across all business lines, underscoring ongoing financial pressures as the Crown corporation advances a multi-year transformation plan.

The loss widened by $164 million compared with a $41-million loss in the same period last year, while revenue fell $181 million, or 14.3 per cent.

The corporation said its transformation is aimed at strengthening postal services, supporting businesses and improving financial sustainability without reliance on taxpayer-funded support.

“Canada Post has begun a critical transformation that will strengthen the postal service, better support businesses and enable national commerce, while helping the corporation meet its dual mandate of delivering for all Canadians in a way that is financially self-sustainable,” it said.

It added the plan is necessary to move away from taxpayer-funded cash injections and will be carried out in consultation with bargaining agents and the federal government.

Labour uncertainty continued to weigh on performance in the quarter, as Canada Post remained without new collective agreements with the Canadian Union of Postal Workers. A ratification vote on tentative agreements is underway from April 20 to May 30.

The company said that uncertainty contributed to weaker parcel demand, with customers shifting volumes to competitors.

Parcel revenue fell $79 million, or 17.1 per cent, while volumes dropped by seven million pieces, or 17.2 per cent, compared with the same period in 2025.

Transaction Mail revenue declined $82 million, or 13.7 per cent, as volumes fell 15.7 per cent, while Direct Marketing revenue dropped $24 million, or 13.4 per cent, on a 17 per cent decline in volume.

The corporation noted year-over-year comparisons were affected by unusually strong mail volumes in early 2025 due to election-related mailings and a backlog following labour disruption in late 2024.

Costs declined $19 million, or 6.9 per cent, in the quarter, largely due to lower outbound parcel volumes and reduced payments to foreign postal administrations. However, labour costs increased due to higher wages and additional paid days.

“Through the first quarter of 2026, the decline in volumes did not result in corresponding labour savings, as the company continued to operate with some labour structure inefficiencies,” Canada Post said.

At the group level, Canada Post recorded a $251-million loss before tax, compared with a $102-million loss a year earlier.

Purolator Holdings Ltd. posted a $23-million profit before tax, up from $19 million in the same quarter of 2025.