Canada Post Reports Record Loss of $1.57 Billion as Transformation Work Begins
While Transaction Mail recorded a 26.2% revenue gain in 2025, the $850 million drop in parcels revenue and the 79 million decline in pieces volumes were significant.
Canada Post reported a record loss of $1.57 billion before tax in 2025, as parcel volumes fell sharply and labour uncertainty continued to weigh on the business.
Days earlier, the Corporation announced it is starting preliminary work on a multi-year transformation, including converting remaining door-to-door addresses to community mailboxes and modernizing its retail network.
The 2025 loss before tax widened by $728 million, or 86.7%, compared to the $841 million loss Canada Post reported for 2024. Total revenue declined by $315 million, or 4.7%, year-over-year.
Parcels were the hardest-hit line of business. Parcels revenue fell by $850 million, or 30.1%, and volumes dropped by 79 million pieces, or 32.6%, compared to 2024.
Canada Post attributes the decline to the lasting effects of the 2024 labour disruption, continued labour uncertainty through 2025, and long-standing restrictions that have limited its ability to compete, particularly for weekend deliveries.
Many parcel customers have moved to other carriers offering greater stability, and Canada Post expects the lost volume to be challenging to recover.
On April 16, Canada Post announced it is starting preliminary work on two core initiatives:
The Corporation says the measures are needed to restore financial sustainability and meet its dual mandate of “delivering for all Canadians without being a recurring burden on taxpayers”.
Approximately four million addresses still receive door-to-door delivery and will be converted to community mailboxes over about five years.
Canada Post is initiating discussions with 13 communities across New Brunswick, Quebec, Ontario, Manitoba and British Columbia, where roughly 136,000 addresses will be converted in late 2026 and early 2027.
Retail modernization is also underway, starting with market reviews of local post offices in urban and suburban areas, which the Corporation describes as currently over-served, while maintaining services in rural, remote and Indigenous areas.
At Cole International, we offer trade consulting and freight forwarding services that can help you navigate shifts in the Canadian logistics landscape.
If you import goods into Canada or ship across the country, reach out to one of our trade professionals to discuss how changes to Canada Post's transformation work may affect your operations.