Canada Post is warning of an increasingly urgent need for structural change after reporting a pre-tax loss of $841 million for 2024 – its seventh consecutive year in the red – followed by a $41 million pre-tax loss in the first quarter of 2025.
The 2024 annual results, released May 28, underscore the growing strain on the Crown corporation’s finances, worsened by a 32-day national strike by the Canadian Union of Postal Workers (CUPW) late last year. Canada Post says that strike alone contributed a $208 million net negative impact to its bottom line and accelerated a loss of parcel business to private competitors.
“Our current structure was built for a bygone era of letter mail – the status quo has led us to the verge of financial insolvency and is not an option,” said Canada Post President and CEO Doug Ettinger. “The need to change, respond to our challenges and secure this important infrastructure for the future is more urgent than ever before.”
2024 LOSS DEEPENS AS STRIKE IMPACT LINGERS
Canada Post’s 2024 operating loss approached $1.3 billion, not including one-time revenue from divestitures of SCI Group Inc. and Innovapost Inc. earlier in the year. Even with those non-recurring gains, the Corporation still reported a staggering $841 million loss before tax – $93 million deeper than 2023’s $748 million deficit.
Total revenue declined by $800 million, or 12.2 per cent, year over year, with drops across all major business lines. Parcel revenue fell by $683 million, or 20.3 per cent, as volumes dropped nearly 20 per cent. Transaction Mail and Direct Marketing also saw declines, driven by digital substitution and business pauses during the strike.
“Many customers who turned to other carriers have not yet returned,” the Corporation stated, adding that this continued erosion is expected to have financial consequences into 2025 and beyond.
Q1 2025: SMALL GAINS, BIG PROBLEMS
The first quarter of 2025 saw a modest improvement over the prior year’s start, with Canada Post posting a $41 million loss before tax – better than the $76 million loss reported in Q1 2024. Revenue grew by four per cent, largely driven by a one-time spike in Transaction Mail due to provincial election mailings and a post-strike rebound.
But the Parcels segment remains a drag. Q1 parcel revenue dropped by $194 million, or 22.9 per cent, with volumes down by over 25 per cent. Canada Post said the losses are due in large part to lasting damage from the 2024 labour disruption and ongoing customer uncertainty as collective bargaining continues.
Despite a temporary lift in Transaction Mail and Direct Marketing revenue, the Corporation continues to forecast long-term challenges unless fundamental reforms are implemented.
GOVERNMENT LOAN, BUT NO LONG-TERM FIX
To prevent insolvency, the federal government in early 2025 approved up to $1.034 billion in repayable funding to Canada Post through March 2026. The support provides short-term stability for operations and workers but, according to the Corporation, “will not solve Canada Post’s structural issues.”
The Corporation is calling for broader changes to its delivery model, labour agreements, and regulatory framework to reflect the evolving demands of Canadians and remain competitive in the parcel sector. Canada Post warned that without such changes, it expects losses to deepen in future years.
GROUP OF COMPANIES ALSO STRUGGLES
Canada Post’s financial difficulties dragged down the overall performance of its Group of Companies in both 2024 and Q1 2025. For the full year, the Group recorded a pre-tax loss of $665 million. For Q1 2025, the Group posted a loss of $102 million – down sharply from a $106 million profit in the same quarter last year. Purolator, the Corporation’s courier subsidiary, remained profitable but saw its earnings fall to $19 million in Q1 2025 from $39 million the year before.
Purolator did, however, announce the acquisition of Livingston International in January, expanding its presence in customs brokerage and international freight – moves aimed at bolstering long-term competitiveness.
LOOKING AHEAD
As labour negotiations continue and structural reforms remain stalled, Canada Post is facing mounting pressure on multiple fronts – from customers, employees, and policymakers. With billions in losses since 2018 and parcel volume slipping further behind private competitors, the Corporation says it must adapt quickly to avoid a deeper fiscal crisis.
“We must be prepared to do what’s necessary to help deliver for Canada as it navigates a challenging future,” said Ettinger.