Canada Post posts $277‑million Q2 loss as Parcels begin recovery

Canada Post recorded a loss before tax of $277 million in Q2 2026 as labour stability supported customer confidence and an early‑stage recovery in Parcels. Operating costs declined as the Corporation focused on improving core productivity.

The Q2 loss improved by $130 million compared to a loss of $407 million in the same period of 2025, when the company faced prolonged labour uncertainty. New collective agreements with CUPW were ratified in June 2026 and run until January 31, 2029. The loss before tax for the first half of 2026 was $482 million, compared to $448 million a year earlier.

Q2 revenue grew by $22 million, or 1.5 per cent, compared to 2025. Parcels revenue rose 20.7 per cent, while Transaction Mail declined following strong election‑related volumes in the prior year. Revenue for the first half of 2026 fell by $159 million, or 7.0 per cent.

Canada Post is converting 621,000 addresses to community mailboxes in late 2026 and 2027, with approximately four million addresses transitioning over multiple years. The Delivery Accommodation Program will remain available for customers with functional limitations.

The Corporation is expanding home parcel pickup, offering box‑free and label‑free returns with select retailers, improving local next‑day delivery, offering strategic pricing discounts for businesses and preparing to launch weekend parcel delivery in Ottawa, Montréal and Toronto later this year.

Parcels revenue rose by $99 million, or 20.7 per cent, in Q2 as volumes increased by seven million pieces, or 15.6 per cent. Transaction Mail revenue fell by $67 million, or 9.1 per cent, as volumes declined by 50 million pieces, or 9.2 per cent. Direct Marketing revenue increased by $1 million, or 0.3 per cent, as volumes fell by three million pieces, or 0.2 per cent.

Operating costs declined by $119 million, or 6.3 per cent, in Q2 and by $138 million, or 6.6 per cent, in the first half of 2026. Labour costs fell and employee benefit costs declined due to higher discount rates.

The Canada Post Group of Companies recorded a loss before tax of $188 million in Q2, compared to a loss of $325 million a year earlier. Purolator recorded a profit before tax of $88 million, compared to $82 million in 2025.