Canadian corporations reported operating profit of $209.9 billion in the first quarter, up $4.1 billion (+2.0%) from the previous quarter, driven by higher commodity prices amid uncertainty in global markets. Gains were primarily driven by non-financial industries, with support from financial industries. Compared with the same quarter one year earlier, Canadian corporations’ operating profit increased by $6.9 billion (+3.4%), according to a new report by Statistics Canada.
The non-financial industries reported higher operating profit, rising by $3.3 billion (+3.1%) to $110.2 billion in the first quarter. Gains were recorded in 21 of 39 non-financial industries, said the federal agency, adding that first quarter operating profit for the financial industries increased $761 million (+0.8%) to $99.7 billion. Quarterly gains were reported in 5 of 13 financial industries.
“The oil and gas extraction industry was the largest contributor to gains in operating profit among non-financial industries, up $3.0 billion (+34.8%) in the first quarter. The increase was mainly driven by higher crude oil prices, stemming from supply disruptions following the closure of the Strait of Hormuz in March,” it said.
“The petroleum and coal product manufacturing industry also recorded gains in operating profit, rising by $1.2 billion (+34.6%) in the first quarter on increased sales of refined petroleum products, largely driven by higher prices. Operating profit reached $4.6 billion, marking their highest level since the second quarter of 2024.
“Operating profit for the mining and quarrying industry (excluding oil and gas extraction) rose by $299 million (+11.3%) in the first quarter of 2026. This was primarily driven by increases in prices and exports of gold and copper, reflecting a sharp increase in demand for both commodities.”
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Operating profit declines across manufacturing industries
In the first quarter, operating profit for the manufacturing industries declined by $347 million (-1.7%) to $19.7 billion compared with the fourth quarter of 2025, as 9 of 14 industries reported decreases. Excluding petroleum and coal manufacturing, operating profit for the manufacturing industries was down $1.5 billion (-9.1%) in the first quarter of 2026, said the report.
“The largest contributor to the decline in operating profit in the first quarter was the motor vehicle and trailer manufacturing industry, down $750 million to a loss of $921 million. The decrease in this industry was driven by lower motor vehicle sales and reduced exports, as production at several major auto assembly plants was scaled back on account of winter shutdowns for maintenance and retooling activities in the first quarter,” noted Statistics Canada.
“Operating profit for the wood product and paper manufacturing industry fell by $334 million (-22.7%) in the first quarter, marking the largest quarterly decrease since the second quarter of 2023. Additional US tariffs introduced since the third quarter of 2025 impacted the industry’s profitability, as both production and export activity have weakened.
“In the first quarter of 2026, the primary metal and fabricated metal product and machinery manufacturing industry’s operating profit was down by $237 million (-6.2%). The machinery manufacturing sub-industry led the decrease in operating profit for this industry, as lower sales were recorded in the quarter. Conversely, the primary metal manufacturing sub-industry partially offset this decrease, recording higher sales of primary metals reaching a new record high in the quarter, mainly on strong demand for non-ferrous metals.”
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Financial industries post marginal gain in operating profit
Among financial industries, the largest increase in operating profit in the first quarter was recorded in the securities and commodity exchanges and portfolio management and miscellaneous financial investment activity industry, up $1.1 billion (+11.6%) on higher operating revenue, said Statistics Canada.
“The miscellaneous intermediation industry, which comprises establishments primarily engaged in the buying or selling of financial contracts, recorded an increase in operating profit of $772 million (+3.2%) in the first quarter. The increase is attributable to operating revenue increasing $578 million (+2.2%) and lower operating expenses,” it said.
“Partially offsetting these gains in the first quarter, the life, health and medical insurance carriers’ operating profit declined by $449 million (-12.6%) because of a combination of lower insurance revenues and higher expenses related to actuarial liabilities. The operating profit for the property and casualty insurance industry declined $440 million (-8.4%), attributable to lower net income from insurance operations, mainly due to lower total insurance revenues (-3.6%).”
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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