Second quarter operating profit for Canadian corporations declined $3.2 billion (-1.7%) from the first quarter, totalling $190.9 billion. The decline was primarily driven by reduced profit in non-financial industries. Despite the quarterly drop, operating profit rose by $2.9 billion (+1.6%) compared to the same quarter last year.
Operating profit for the non-financial industries fell by $4.0 billion (-3.8%) to $100.8 billion in the second quarter. Decreases were recorded in 13 of 39 non-financial industries.
In contrast, operating profit for the financial industries rebounded after two consecutive quarters of decline, rising $776 million (+0.9%) to $90.1 billion in the second quarter, with 6 of 13 industries posting quarterly gains.
Chart 1: Corporate operating profit (seasonally adjusted)
Description - Chart 1
Data table: Corporate operating profit (seasonally adjusted)
Source: Table 33-10-0226-01.
Operating profit for oil and gas industry down on lower prices
The oil and gas extraction led the non-financial industries' decline, reporting reduced quarter-to-quarter operating profits of $2.9 billion (-26.2%) in the second quarter. This decrease was driven by falling crude oil prices amid concerns over a potential global oversupply, along with lower exports and wildfire-related production shutdowns during the quarter.
The pipeline transportation industry saw its operating profit decline by $283 million (-17.3%) in the second quarter, partly driven by a temporary shutdown of a pipeline in the northern United States following a rupture.
Petroleum and coal product manufacturing drives the decline in manufacturing operating profit
Operating profit for the manufacturing industries was down by $2.0 billion (-8.9%) from the first quarter to $21.0 billion in the second quarter, as 5 of 14 industries reported decreases.
Petroleum and coal product manufacturing operating profit was down $1.8 billion (-38.1%) in the second quarter. The decline was primarily driven by lower prices for refined petroleum products, along with several partial and full refinery shutdowns during the quarter.
In the second quarter, operating profit in the motor vehicle and trailer manufacturing industry fell by $611 million (-70.0%). The downturn was primarily driven by the operational uncertainty surrounding the recent US tariffs on motor vehicles. This uncertainty led to the partial shutdown of several assembly plants, reduced production and lower exports, ultimately weighing on the industry operating revenue (-5.4%).
The operating profit of the aerospace, rail and ship products and other transportation equipment manufacturing industry rose by $112 million (+29.1%) during the second quarter, primarily due to increased demand for aircraft and related components.
Retail trade operating profit increases
In retail trade, operating profit increased by $446 million (+4.4%) in the second quarter, reaching $10.6 billion. The increase was led by clothing, sporting goods, and general merchandise stores, which saw operating profit rise by $286 million (+9.1%), driven mainly by a gain of $1.1 billion (+2.5%) in operating revenue in the quarter.
Financial industries report gains in operating profit
Among financial industries, property and casualty insurance carriers led the increase in operating profit, up $903 million (+26.8%) in the second quarter. The increase was attributable to lower claims, in part due to favourable weather conditions.
Credit card issuing, sales financing and consumer lending was up $336 million (+8.3%) in the second quarter due to higher operating revenues from its non-interest income segment.
The banking and other depository credit intermediation industry's operating profit declined by $566 million (-2.1%) in the second quarter. The decrease was largely due to higher expenses from provisions for credit losses (+30.6%), though this was partially offset by higher net interest income (+1.2%), supported in part by growth in residential mortgages.
Note to readers
Upcoming changes
Quarterly financial statistics for enterprises are based on a sample survey and represent the activities of all corporations in Canada, except those that are government-controlled or not-for-profit. An enterprise can be a single corporation or a family of corporations under common ownership and/or control, for which consolidated financial statements are produced.
As of the second quarter of 2025, this analysis will shift to operating profits in place of net income before taxes (NIBT). This change focuses on profits earned from normal business activities, excluding the effects of non-operating items and tax-related factors.
For non-financial industries, operating profits exclude interest and dividend revenue and capital gains/losses. For financial industries, these are included, along with interest paid on deposits.
This adjustment does not affect the structure or content of the financial data. All tables and figures will remain consistent and continue to include the full range of financial metrics, including NIBT.
Next release
Financial statistics for enterprises for the third quarter of 2025 will be released on November 24.
Contact information
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