Canada Post has reported a C$541m (US$384m) pre-tax loss in the third quarter of 2205, the company’s largest ever recorded quarterly loss and up C$226m (US$160m) compared to the same quarter last year.
According to the post, the continued financial deterioration is a result of ongoing strike action and an increase in delivery competition, resulting in a revenue decline for parcels of 40%.
For the first nine months of 2025, Canada Post recorded a loss before tax of C$989m (US$702m), compared to a loss before tax of C$345m (US$245m) in the same period a year earlier. Nearly all year-to-date losses were incurred in the second and third quarters, reflecting the significant impact of labor uncertainty on the business. The company’s stated its year-to-date results put it on track to record a 2025 loss that’s significantly larger than any in its history.
Continued losses driven by strikes
In the third quarter and first nine months of the year, the company continued to operate without new collective agreements with its largest union, the Canadian Union of Postal Workers (CUPW). According to Canada Post, the ongoing strike activity by CUPW and uncertainty about service disruptions continued to negatively impact its parcels and direct marketing revenue.
Transaction mail revenue rose due to stamp price increases, as well as volume increases related to election mailings and a surge in lettermail following the national strike in the fourth quarter of 2024.
In the third quarter and first nine months of 2025, Canada Post’s revenue fell by C$283m (US$201m), or 18%, and by C$386m (US$274m), or 6.8%, respectively, compared to the same periods of the prior year.
Union deal
However, on November 21, the CUPW announced it had reached “agreements in principle with Canada Post covering both postal bargaining units”.
According to the union, this means both sides have agreed on the main points of the deals, but “we need to agree on the contractual language that will form the collective agreements that would be put to a vote by the members,” it added.
Under the terms of the agreements in principle with Canada Post, the current collective agreements will remain in full force and effect. “Upon signing the agreements, the union agrees to pause its strike action, and the employer agrees to suspend its right to lockout. The union will retain the right to strike until new agreements are ratified,” CUPW added in its statement. More information on the proposed changes to the collective agreements for both bargaining units will be published in due course.
Government support
In early 2025, the government of Canada announced funding of up to C$1.034bn (US$734m) for Canada Post during the government’s 2025-26 fiscal year. The cash injections are being used to cover operating expenses that cannot be sufficiently supported by the company’s projected revenues.
Canada Post started receiving these government cash injections in the third quarter, with total payments of C$755m (US$536m) that quarter. While the funding is intended to carry Canada Post through the government of Canada’s fiscal year ending March 31, 2026, Canada Post expects to fully utilize the C$1.034bn (US$734m) by December 31, 2025, due to the ongoing labor uncertainty and its impact on revenue. Canada Post will therefore need to access short-term financing facilities to maintain solvency and support operations over the following 12 months.
For more information on Canada Post’s financial results, click here