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OTTAWA — Canada Post reported a loss before tax of $407 million in its second quarter as its parcels business fell due to labour uncertainty.
The company says the loss compares with a profit before tax of $46 million in the same period a year earlier when its results were helped by the sale of SCI and Innovapost.
Canada Post is in a fresh round of contract talks with 55,000 postal workers after the employees rejected an offer by the company in a government-ordered vote earlier this year.
It has warned the postal service is bleeding millions of dollars in business daily tied to uncertainty around its collective bargaining.
The company said its mail volume increased in the quarter, but it was largely driven by one-time federal election mailings, while parcels declined sharply as customers chose other carriers due to the labour uncertainty.
Overall revenue for Canada Post was $1.51 billion for the quarter ended June 28, down from $1.65 billion in the same quarter last year.
Canada Post said parcels revenue in the quarter amounted to $475 million, down from $763 million a year ago, as parcel volume fell 36.5 per cent compared with the same quarter last year.
The company said volumes fell sharply after the union started an overtime ban on May 23.
Meanwhile, transaction mail revenue totalled $732 million, up from $579 million a year ago, as volumes rose 3.5 per cent. Canada Post said the business benefited from election-related mailings, while an increase in the postage rate also helped boost revenue.
Direct marketing revenue was $233 million, down from $256 million, as volumes fell 13.2 per cent. Consumer products and services revenue was $68 million, up from $55 million.
Purolator, which is also owned in part by the Canada Post Group of Companies, earned a profit before tax of $82 million in the second quarter, compared with a profit before tax of $81 million in the same quarter a year ago.
In its latest proposal to the company, the Canadian Union of Postal Workers is seeking increased wages compared with the offer workers rejected, but also says it would allow for the addition of weekend delivery and part-time workers to the postal service, with some limitations.
Under the plan, weekend mail service would be mostly limited to parcel delivery, pickup and mail sorting.
Canada Post has said it is reviewing the union proposal.
This report by The Canadian Press was first published Aug. 26, 2025.
The Canadian Press
