Canada Post lost $1.57 billion in 2025, the most money it has ever lost in a single year, as fewer people used its services and ongoing labour issues disrupted its business.
According to a press release, Canada Post blamed the losses to ongoing labour uncertainty, declining parcel volumes and structural challenges. The loss widened by $728 million from $841 million in 2024, an increase of 86.7 per cent, while revenue fell by $315 million or 4.7 per cent, according to Canada Post.
The latest results continue a long running pattern of financial losses. Canada Post has faced sustained deficits for several years as traditional letter mail volumes decline and competition intensifies in the parcel delivery market. While parcel demand rose sharply during the pandemic, much of that business has since shifted to private carriers.
Labour uncertainty was a key factor in the 2025 results. The corporation operated without new collective agreements with the Canadian Union of Postal Workers throughout the year, following a national disruption in late 2024. According to Canada Post, the uncertainty led many parcel customers to move shipments to competing carriers offering more predictable service.
Parcel volumes dropped by 79 million pieces, a decline of 32.6 per cent compared with 2024. Parcel revenue fell by $850 million or 30.1 per cent, reflecting both lost business and increased competition, the corporation stated.
Transaction mail, which remains in long term decline due to digital communication, saw a temporary increase. Revenue rose by $564 million or 26.2 per cent, supported by a postage rate increase, election related mailings and a short term rebound following the 2024 disruption, according to the corporation. Despite this, overall volumes remain under pressure.
Direct marketing also declined, with revenue down $46 million or 4.5 per cent and volumes falling by 9.8 per cent. Canada Post said many marketers reduced or delayed campaigns amid concerns about service reliability during labour uncertainty.
The corporation’s financial position has required increasing government support. In 2025, Canada Post received $1.034 billion in repayable federal funding to maintain operations. Additional funding of up to $1.008 billion was approved in early 2026 as losses deepened, according to a Canada Post press release.
Canada Post has pointed to longstanding regulatory and operational constraints as barriers to modernization, including limitations affecting pricing flexibility and delivery models. According to the corporation, these constraints have made it more difficult to compete in a parcel market that increasingly demands speed, flexibility and weekend delivery.
To address the situation, Canada Post said it is advancing a transformation plan aimed at restoring financial sustainability. Measures include expanding centralized delivery through community mailboxes, streamlining operations and adapting services to changing customer needs.
Community mailboxes remain a key cost reduction strategy by lowering the expense of door to door delivery. Their continued use has been contentious in some communities but is viewed by Canada Post as necessary to control long term costs.
Labour stability is expected to play a critical role in any recovery. Canada Post said securing new collective agreements and restoring consistent service will be essential to rebuilding customer confidence and regaining lost parcel volumes.
Canada Post warned that without significant structural changes, financial pressures will persist as it attempts to adapt to a rapidly evolving communications and delivery landscape.