Canada Post posts record quarterly loss amid labour unrest and parcel slump

Canada Post reported a loss before tax of $407 million in the second quarter of 2025, its largest single-quarter loss on record, as labour unrest and strike activity sharply reduced parcel volumes and revenues.

The Crown corporation said profitability deteriorated by $453 million compared with the same period in 2024, when it posted a profit before tax of $46 million. Losses in the first half of 2025 reached $448 million, compared with $30 million a year earlier, with more than half of the year-to-date shortfall occurring in June at the height of labour uncertainty.

The Canadian Union of Postal Workers (CUPW) initiated strike action May 23 by refusing overtime, creating further uncertainty for Canada Post’s customers less than a year after a 32-day national strike in late 2024.

While Transaction Mail revenue rose in the quarter thanks to one-time federal election mailings, Parcels, the company’s largest and most critical line of business, suffered a dramatic decline as customers shifted to rival carriers. Parcels revenue dropped by $288 million, or 36.7 per cent, with volumes down by 25 million pieces, or 36.5 per cent, compared with the second quarter of last year. For the first half of 2025, Parcels revenue plunged by $482 million as volumes fell by 43 million pieces.

Overall, second-quarter revenue fell $145 million, or 7.3 per cent, compared with the year prior. For the first half of the year, revenue dropped $103 million, or 1.5 per cent. Canada Post noted the declines come on top of significant structural challenges, including seven straight years of losses. In 2024, the company posted a loss before tax of $841 million, bringing cumulative pre-tax losses since 2018 to more than $4.2 billion.

Between July 21 and Aug. 1, the Canada Industrial Relations Board held a vote on Canada Post’s final contract offers to CUPW members. On Aug. 1, the board confirmed that a majority of employees rejected the proposals, leaving negotiations unresolved and deepening the uncertainty.

The corporation also reported a loss from operations of $396 million in the quarter, compared with $269 million in the same period last year. For the first six months of 2025, the operating loss widened to $507 million, compared with $490 million in the first half of 2024.

Operating costs declined by $18 million, or 0.9 per cent, in the quarter and $86 million, or 0.7 per cent, in the first half, reflecting lower parcel volumes, reduced management headcount, fewer paid days and reduced non-capital investments. However, wage increases and labour cost pressures offset those gains.

In other business segments, Transaction Mail revenue rose $153 million, or 28.4 per cent, in the quarter as volumes increased by 11 million pieces, driven by election mailings and postage rate hikes. Direct Marketing revenue fell $23 million, or 7.5 per cent, as customers wary of delays sought alternatives.

Across the Canada Post Group of Companies, which includes Purolator, the second-quarter loss before tax was $325 million, compared with a $135 million loss a year earlier. Purolator contributed a profit before tax of $82 million.

With negotiations still unresolved and parcel customers continuing to seek delivery stability, Canada Post warned it remains on track to post a larger annual loss in 2025 than the $841 million recorded last year.