Canada Post says it recorded a loss before tax of $205 million in the first quarter of 2026 as revenue and volumes declined across all lines of business, reinforcing the urgency of the Corporation’s transformation that’s now underway.
The company’s $205-million loss before tax in the first quarter deteriorated by $164 million compared to a loss before tax of $41 million in the first quarter of the prior year. Revenue fell by $181 million, or 14.3 per cent, in the first quarter compared to the same period of 2025, it stated.
A multi-year transformation to make the company and the country stronger
“Canada Post has begun a critical transformation that will strengthen the postal service, better support businesses and enable national commerce, while helping the Corporation meet its dual mandate of delivering for all Canadians in a way that is financially self-sustainable. The multi-year transformation is essential for the company to move away from taxpayer-funded cash injections,” it said.
“Canada Post is committed to moving forward with its transformation in a timely manner, while working closely with its bargaining agents and the Government of Canada.”
Continued labour uncertainty weighed on customer demand in first quarter
In the first quarter of 2026, the company continued to be without new collective agreements with the Canadian Union of Postal Workers (CUPW). A ratification vote by employees on tentative agreements is currently taking place from April 20 to May 30, 2026. This uncertainty for customers continued to weigh on Parcels results in the first quarter, with revenue down by $79 million compared to the same period of the prior year. Volumes and revenue also declined for the Transaction Mail and Direct Marketing lines of business, said the corporation.
The cost of operations declined by $19 million, or 6.9 per cent, in the first quarter compared to the same period a year earlier. This was partly due to a decline in outbound parcel volumes, which resulted in lower fees paid to foreign postal administrations for delivering mail and parcels. Labour costs rose due to higher wages and four additional paid days compared to the same period a year earlier. Through the first quarter of 2026, the decline in volumes did not result in corresponding labour savings, as the company continued to operate with some labour structure inefficiencies, it explained.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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