Canada Post has revealed staggering financial losses totaling $541 million before taxes in the third quarter of 2025, marking what the Crown corporation describes as an "unprecedented" downturn in its history. The massive loss represents a 71.7 percent increase compared to the same period last year, pushing the company's operational losses beyond the $1 billion mark for the first nine months of 2025.
Historic Financial Crisis
The national postal service reported that its financial situation has deteriorated dramatically throughout 2025, with before-tax losses reaching $989 million in the first nine months of the year. This compares to a loss of $345 million during the same period in 2024, indicating a severe acceleration of the company's financial challenges.
In an official earnings release, Canada Post stated that it is "facing the most severe and challenging financial situation in its history." The third quarter results represent the largest quarterly loss ever recorded by the century-old institution, raising serious concerns about its future stability.
Labour Disruptions Blamed for Customer Exodus
Canada Post management has pointed directly to labour uncertainty and ongoing strike activities as the primary drivers of the financial collapse. The corporation reported that labour disruptions have driven customers to competitors for their delivery needs, resulting in a devastating 40 percent decline in parcels revenue.
The timing of the losses aligns with significant labour actions, with most of the damage occurring in the second and third quarters of 2025. These periods reflect the substantial impact of postal workers' labour disruption on business operations, according to company statements.
Revenue figures paint a bleak picture, with the company experiencing an $283 million decline (18 percent) in the third quarter alone, and a total revenue drop of $386 million (6.8 percent) so far this year.
Ongoing Labour Negotiations and Union Response
The financial crisis unfolds against the backdrop of prolonged labour negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW). The union, representing 55,000 employees, has been without new collective agreements since the beginning of 2025.
Labour tensions have escalated throughout the year, with CUPW initiating a rotating strike on October 11, following a two-week national strike. Negotiations have been ongoing for 23 months, creating sustained uncertainty for both customers and employees.
In response to the financial results, the union emphasized that Canada Post needs to regain and expand its share of the parcel market. The comment came during the company's annual public meeting on Tuesday, where initial third-quarter figures were first disclosed.
Despite the overall financial turmoil, there was one bright spot in the earnings report. Canada Post-owned Purolator recorded a profit of $59 million in the third quarter, though this represents a slight decrease from the $62 million profit reported in 2024.
The only revenue growth area for Canada Post came from transaction mail, which saw increases due to stamp price adjustments and volume surges related to election mailings and increased lettermail following the national strike in late 2024.
