Canada Post reports record $1.57B loss in 2025 amid labour uncertainty, declining volumes

Canada Post says its financial situation worsened significantly in 2025, posting its largest loss on record as labour uncertainty and longstanding structural constraints weighed on operations.

The Crown corporation reported a loss before tax of $1.57 billion for the year, widening by $728 million, or 86.7 per cent, compared with a loss of $841 million in 2024. Annual revenue fell by $315 million, or 4.7 per cent, driven largely by a sharp decline in parcel volumes.

The company said ongoing uncertainty tied to the absence of collective agreements with its largest union, the Canadian Union of Postal Workers, led customers to shift business to competing carriers. Parcel volumes dropped by 79 million pieces, or 32.6 per cent, in 2025, losses the company said will be difficult to recover.

Canada Post also continued to rely on government support, receiving $1.034 billion in repayable funding in 2025, with an additional $1.008 billion approved in early 2026 as financial pressures intensified.

Parcels revenue fell by $850 million, or 30.1 per cent, reflecting both lower volumes and the lingering effects of labour disruptions. The company said regulatory restrictions have further limited its ability to compete, particularly in growing areas such as weekend delivery.

Transaction mail revenue rose by $564 million, or 26.2 per cent, helped by a postage rate increase and temporary volume gains tied to election mailings and a rebound following a 2024 national strike. However, Canada Post noted the segment remains in long-term decline.

Direct marketing revenue declined by $46 million, or 4.5 per cent, as volumes dropped amid labour disruptions and marketer concerns over delays.

The broader Canada Post Group of Companies reported a loss before tax of $1.39 billion, more than doubling from $665 million in 2024, largely due to the performance of the core postal segment.

Purolator Holdings Ltd., a subsidiary, reported a profit before tax of $256 million, down from $294 million the previous year, citing costs related to its acquisition of Livingston International.

Canada Post said it is moving ahead with “transformative measures” aimed at restoring financial sustainability and modernizing its operations following recent federal decisions to ease longstanding policy and regulatory constraints.