Canada Post reports $277M quarterly loss after union ratifies new contract

Canada Post reported a loss before tax of $277 million in the three-month period from April through June after the union representing roughly 55,000 postal workers ratified a new multi-year deal in June, ending years of labour uncertainty.

The second-quarter loss was an improvement from a $407 million loss in the same period a year ago, when the company faced prolonged labour negotiations. However, it represented an increase from a $205 million loss in the first quarter of 2026. The company credited labour stability for the smaller loss and said it saw "an early-stage recovery" after solidifying the collective agreement with the Canadian Union of Postal Workers.

The CUPW ratified a new contract on June, with terms running until January 31, 2029. Multiple labour disruptions over nearly two years—including strike action and schedule changes—had compounded revenue losses and impacted millions of Canadians and businesses relying on Canada Post for mail and parcel delivery.

Canada Post's revenue grew $22 million in the second quarter, or 1.5 per cent, compared to a year earlier, with parcel revenues spiking 20.7 per cent year-over-year.

The Crown corporation is undergoing a transition to community mailboxes over five years, including multiple phases across the country. It is also shrinking its executive workforce and closing some post offices in communities that have grown to become suburban or urban. The government and company said mail services in rural, remote, and Indigenous communities will be protected, and door-to-door delivery can be requested by Canadians with mobility issues or disabilities.