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- Corporation proceeding with its transformation to build a modern postal system, improve service and return to financial self-sustainability
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OTTAWA, Canada – Canada Post’s financial situation deteriorated significantly in 2025 as labour uncertainty weighed on the business, and decades-old rules and frameworks continued to impede the company’s modernisation and its ability to compete. The severity of the Corporation’s financial situation underscores the urgency to transform and meet the modern needs of the country.
The company’s 2025 loss before tax of $1.57 billion widened by $728 million, or 86.7 percent, compared to a loss before tax of $841 million in the prior year. It was the Corporation’s largest loss before tax on record. Revenue for the year declined by $315 million, or 4.7 percent, compared to 2024, as parcel volumes fell sharply largely due to labour uncertainty throughout 2025.
Building on the federal government’s decision to lift long-standing policy and regulatory restrictions, Canada Post is proceeding with transformative measures to return the company to financial sustainability and renew the postal service to meet the needs of Canadians and Canadian businesses in today’s economy.
Record loss underscores the need to transform and move away from cash injections
Throughout 2025, Canada Post continued to operate without new collective agreements with its largest union, the Canadian Union of Postal Workers (CUPW). The labour uncertainty had a significant impact on the company as parcel delivery customers shifted their business to other carriers that could provide stability. In 2025, parcel volumes fell by 79 million pieces, or 32.6 per cent, compared to the prior year. Given the impact on customers, the lost parcel volumes will be challenging to win back – emphasising the need to modernize Canada Post’s services in a competitive market.
Transformation is also critical for the company to move away from taxpayer-funded cash injections. In 2025, the company received repayable government funding of $1.034 billion, which was intended to carry the Corporation through the government’s fiscal year ending March 31, 2026. However, the funding was insufficient due to the severity of the Corporation’s financial situation. In early 2026, the government approved up to $1.008 billion in additional repayable funding.
- The Canada Post Group of Companies’ operations are historically funded by revenue generated by the sale of its products and services. In 2025, due to its deteriorating financial situation and to prevent insolvency, the Canada Post segment started receiving repayable federal government cash injections.
SOURCE: Canada Post