Canada Post reported its largest annual loss ever on Monday, April 20.
The national carrier faces a staggering $1.57-billion pre-tax deficit blamed on labour uncertainty and outdated regulations.
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The 2025 financial results represent a significant decline from the $841-million loss recorded in 2024. Total revenue for the Crown corporation fell by $315 million, or 4.7 per cent, as many commercial customers shifted their business to private competitors during a year marked by prolonged contract negotiations.
“The severity of the corporation’s financial situation underscores the urgency to transform and meet the modern needs of the country,” the company said in a statement.
Parcel Volumes Decimated
The hardest hit segment was the parcel business, which saw revenue drop by 30.1 per cent. Volumes plummeted by 79 million pieces — a 32.6 per cent decline compared to the previous year.
Management attributed the exodus to uncertainty surrounding collective bargaining with the Canadian Union of Postal Workers (CUPW). Without a new agreement in place for much of the year, many retailers secured long-term contracts with other delivery providers to ensure stability, particularly for weekend deliveries.
Taxpayer Lifeline
The financial strain forced the federal government to provide significant financial support to prevent insolvency.
In 2025, the corporation received $1.034 billion in repayable government funding. However, that injection proved insufficient to cover the deepening deficit, leading the government to approve an additional $1.008 billion in repayable funding earlier this year.
Mixed Results Elsewhere
While parcel and marketing mail struggled, transaction mail — which includes letters and bills — provided a rare bright spot:
- Transaction Mail: Revenue rose 26.2 per cent to $564 million, bolstered by a postage rate hike in January 2025 and election-related mailings.
- Direct Marketing: Revenue dropped 4.5 per cent, largely due to a delivery ban on certain neighbourhood mail items during the second half of the year.
- Purolator: The courier subsidiary remained profitable, though its pre-tax profit of $256 million was down 12.9 per cent from 2024, partially due to acquisition costs.
Canada Post says it is now moving forward with “transformative measures” intended to move the company away from its reliance on government cash injections and return it to a self-sustaining financial model.
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