Canada Post reported a loss before tax of C$1.57bn (US$1.15bn) for 2025, marking its largest annual loss on record and highlighting ongoing financial and operational challenges.
The loss widened by C$728m (US$533m), or 86.7%, compared with a pre-tax loss of C$841m (US$616m) in 2024. Revenue declined by C$315m (US$231m), or 4.7%, as parcel volumes dropped significantly during the year.
The corporation said labor uncertainty throughout 2025, along with longstanding regulatory constraints, continued to limit its ability to modernize and compete in the parcel delivery market.
Parcel volumes fell by 79 million pieces, or 32.6%, as customers shifted to alternative carriers offering more stable service during ongoing negotiations with the Canadian Union of Postal Workers (CUPW). The company noted that much of this lost business may be difficult to recover. Parcel revenue declined by C$850m (US$622m), or 30.1%, reflecting both reduced volumes and the lingering effects of labor disruption in 2024 and uncertainty in 2025.
Canada Post continued to operate without new collective agreements with its largest union during the year, contributing to instability for customers and the broader business.
In contrast, transaction mail revenue increased by C$564m (US$413m), or 26.2%, supported by a postage rate increase implemented in January 2025, election-related mailings and a temporary volume increase following the 2024 national strike. Volumes in this segment rose by 2.4%.
Direct marketing revenue declined by C$46m (US$34m), or 4.5%, as volumes fell by 417 million pieces. The decrease was attributed to labor disruptions and a ban on the delivery of neighbourhood mail items in the second half of the year, as well as customers avoiding time-sensitive mailings.
The Canada Post Group of Companies recorded a pre-tax loss of C$1.39bn (US$1.02bn), more than doubling from C$665m (US$487m) in 2024. This decline was largely driven by the Canada Post segment, with year-over-year comparisons also affected by divestitures completed in 2024.
Purolator, a subsidiary, reported a pre-tax profit of C$256m (US$187m), down 12.9% from the previous year, due in part to financing costs related to its acquisition of Livingston International.
To maintain operations, Canada Post received C$1.034bn (US$760m) in repayable government funding in 2025, with an additional C$1.008bn (US$740m) approved in early 2026. The corporation said it is proceeding with transformation measures aimed at modernizing operations, improving service and returning to financial self-sustainability.
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