Most Profitable Industries in Canada in 2025

• 1. Commercial Banking in Canada

  Total Profit for 2025: $152.5B

  The high interest rate environment experienced over the five years to 2025, along with overall economic growth, has benefitted the Commercial Banking industry in Canada. Banks have done an exceptional job diversifying revenue streams, due to higher interest rates and despite increasing regulations. The industry primarily generates revenue through interest income sources, such as business loans and mortgages, but it also generates income through noninterest sources, which include fees on a var...

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• 2. Life Insurance & Annuities in Canada

  Total Profit for 2025: $22.4B

  While revenue growth has been positive overall, economic volatility has led to significant fluctuations in revenue for Canadian life insurers and annuity providers in recent years. A sharp drop in GDP during the pandemic initially constrained demand, but generous government aid allowed consumers to keep buying financial products, lifting revenue slightly in 2020. A strong rebound followed in 2021 before high inflation and shrinking disposable incomes triggered a major pullback in 2022. Betwee...

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• 3. Apartment Rental in Canada

  Total Profit for 2025: $19.9B

  Revenue for Canadian apartment lessors has gained through the end of 2025. Apartment lessors collect rental income from rental properties, so market forces largely determine their rates. The supply of apartment rentals has grown slower than demand, which has elevated rental rates for lessors' benefit. Favourable economic conditions and demographic trends during most of the period have driven growth in demand. In 2020, the spread of COVID-19 lessened demand for apartment rentals, but the natur...

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• 4. Petroleum Refining in Canada

  Total Profit for 2025: $13.2B

  Revenue for the Canadian Petroleum Refining industry has been volatile. Crude oil is the primary input into industry products, and therefore, its price is the primary driver of industry revenue. However, the pandemic's collapse in oil prices in 2020 drove refinancing revenue down. Subsequently, high demand and ongoing supply chain disruptions led crude oil prices to spike sharply, translating into an industry revenue boom in 2021 and 2022. However, tempering oil prices in 2024 and potentially...

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• 5. Oil Drilling & Gas Extraction in Canada

  Total Profit for 2025: $11.9B

  Oil drilling and gas extraction in Canada have grown tremendously, resulting from rising prices and additional investment in production. Oil and gas companies suffered significantly in 2020 amid the pandemic as prices drastically fell amid lockdowns. As the economy reopened, the need for oil and gas became apparent and prices skyrocketed, bolstering revenue. The Russia-Ukraine conflict further exacerbated this, causing exports to surge as foreign countries looked elsewhere to get oil and gas....

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• 6. Electric Power Transmission in Canada

  Total Profit for 2025: $7.8B

  Electricity transmission companies in Canada are responsible for storing and distributing electricity from Canada's upstream generation facilities. They manage transmission and distribution networks that total over 160,000 kilometres to serve residential, industrial and commercial customers. Performance relies on electricity prices within provinces, although the inelasticity of energy needs and the high degree of regulation insulate transmitters from significant revenue drops. Performance is ...

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• 7. Management Consulting in Canada

  Total Profit for 2025: $7.6B

  Management consultants in Canada continue to drive considerable demand from a wide range of clients, as the vital nature of their services remains a core calling card for a variety of clients. Inflation volatility in recent years, which peaked at 8.1% in 2022 per the Bank of Canada, hampered individual clients’ capability of securing long-term commitments from consultants and encouraged in-house alternatives. Despite this, the economic downturn caused some customers to invest in countercyclic...

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• 8. Automobile Wholesaling in Canada

  Total Profit for 2025: $7.4B

  High prices have become the signature challenge for the industry, as rising costs for materials like plastics spill over, pressuring companies to strategically price their offerings. Meanwhile, original equipment manufacturers (OEMs) that manufacture and sell cars directly to consumers remain a genuine challenge, prompting the industry to focus on competitive pricing to maintain its market appeal. Notably, the end of the iZEV program, which once provided economic incent...

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• 9. Heavy Engineering Construction in Canada

  Total Profit for 2025: $7.0B

  Over the five years through 2025, returns for the Heavy Engineering Construction industry in Canada have expanded, supported by federal infrastructure spending, which has fallen short of initial plans. Specifically, the Investing in Canada Plan, a 12-year infrastructure spending plan passed as part of Budget 2017, committed $188.0 billion in spending but has ultimately resulted in less than $110.0 billion in infrastructure spending. The Canada Infrastructure Bank, part of the Investing in Can...

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• 10. Colleges & Universities in Canada

  Total Profit for 2025: $6.8B

  Colleges and universities in Canada have seen significant shifts in funding sources in recent years. While federal and provincial government support continues to make up nearly half their revenue, the federal government upped its higher education spending by 22.4% from 2019 to 2024, especially benefiting universities' research and development initiatives. This federal support helped offset inconsistent provincial funding, ranging from lacklustre to solid between regions. Ontario, home to over...

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