Canada Post says it posted a record loss before tax of $1.57 billion in 2025 as labour uncertainty, declining parcel volumes, and structural challenges continued to weigh on the Crown corporation.
The company said the loss widened by $728 million from the $841 million loss reported in 2024. Revenue also fell by $315 million, or 4.7 per cent, during the year.
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Parcel business hit hard
Canada Post said parcel volumes dropped by 79 million pieces, or 32.6 per cent, compared with the previous year.
The corporation attributed much of the decline to ongoing labour uncertainty involving negotiations with its largest union, the Canadian Union of Postal Workers, which prompted customers to move shipments to competing carriers.
Canada Post said many of those customers signed longer-term agreements with competitors, making lost business difficult to recover.
Government funding required
The corporation said it received $1.034 billion in repayable federal funding in 2025 to help avoid insolvency, but described the support as insufficient given the severity of its financial situation.
It added the federal government approved up to another $1.008 billion in additional repayable funding in early 2026.
Calls for modernization
Canada Post said the financial results highlight the urgency of modernizing its operations and adapting to changing customer needs.
The corporation said longstanding policy and regulatory restrictions have limited its ability to compete, particularly in weekend parcel delivery, a growing segment of the market.
Other business lines
While parcel revenue declined sharply, transaction mail revenue rose by $564 million in 2025, helped by a postage rate increase, election-related mailings, and a temporary increase in volumes following the national strike in late 2024.
Direct marketing revenue fell by $46 million as labour disruptions and uncertainty also affected advertisers.
Purolator remains profitable
Purolator Holdings Ltd., a subsidiary of Canada Post, reported a profit before tax of $256 million in 2025, down from $294 million a year earlier.
Canada Post said the decline was largely tied to financing costs related to Purolator’s acquisition of Livingston International.