Canada Post says it has recorded a pre-tax loss of $205 million for the first quarter of 2026, due to revenue and volume declining “across all lines of business.”
In a media release on Friday, the federal Crown corporation revealed the first-quarter loss is substantially more than the Q1 loss recorded 2025, where Canada Post lost $41 million before tax, an increase of $164 million.
The corporation’s revenue also took a hit, falling by $181 million, or 14.3 per cent, in the first quarter of 2026 compared to the same period of 2025.
Canada Post says the figures have reinforced the urgency of the corporation’s transformation that is “now underway.”
The multi-year transformation will involve collaboration between Canada Post’s bargaining agents and the federal government, with the goal to “move away from taxpayer-funded cash injections.”
In 2025, Canada Post received an initial, repayable federal government cash injection of $1.03 billion to support its deteriorating financial situation and to prevent insolvency. The money failed to sustain the postal service past early February 2026.
READ MORE: Feds greenlight $673 million to keep Canada Post afloat this year
Earlier this May, the federal government greenlit an additional $673 million to keep Canada Post afloat this year.
How union discussions affected revenue
The first-quarter injection came amid labour uncertainty for Canada Post workers, which also “resulted in uncertainty for customers and pushed deliveries to competitors offering stability,” the corporation said in a media release.
The uncertainty stems from ongoing collective agreement talks with the Canadian Union of Postal Workers (CUPW), with employees voting on tentative agreements from April 20 to May 30, Canada Post said.
As customers adjusted to the labour disruption, the corporation said parcel revenue fell by $79 million, or 17.1 per cent, while volumes declined by seven million pieces compared to the same period in 2025.
Transaction mail revenue also fell by $82 million, or 13.7 per cent, as volumes declined by 76 million pieces. However, the corporation said results were affected by a surge in election mailings and a backlog following the labour disruption in late 2024.
Direct marketing revenue fell by $24 million, or 13.4 per cent, due in part to a strong Q1 in 2025, following the 2024 labour disruption, as well as some marketers shifting to digital channels and AI.
