Fisheries and Oceans Canada - Quarterly financial report for the quarter ended December 31, 2025

Table of contents

1. Introduction
2. Highlights of the fiscal quarter and fiscal year-to-date (YTD) results
3. Risks and uncertainties
4. Significant changes in relation to operations, personnel and programs
5. Approval by senior officials
6. Appendix

1. Introduction

This quarterly financial report has been prepared as required by section 65.1 of the Financial Administration Act. The quarterly report should be read in conjunction with the current year’s Main Estimates and Supplementary Estimates (B).

This quarterly report has not been subject to an external audit or review.

Further details on Fisheries and Oceans Canada’s authority, mandate and programs may be found in the Departmental Plan.

1.1 Basis of presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities includes Fisheries and Oceans Canada’s spending authorities granted by Parliament and those used by the Department consistent with the 2025-26 Main Estimates, Supplementary Estimates (B), and the Operating and Capital Budget Carry Forwards.

The authority of Parliament is required before money can be spent by the Government. Approval is given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

The Department uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of the fiscal quarter and fiscal year-to-date (YTD) results

The following section highlights the financial results and provides explanations as at December 31, 2025, compared to the same period last year.

2.1 Significant changes in authorities

In the third quarter of 2025-26, total budgetary authorities available for use decreased by $772.9 million (14.1%) compared to the same period in the previous year:

• Vote 1 authorities decreased by $493.4 million
• Vote 5 authorities decreased by $528.4 million
• Vote 10 authorities increased by $223.6 million
• Statutory authorities increased by $25.3 million

Comparison of net budgetary authorities, by Vote, as at December 31 of fiscal years 2024-25 and 2025-26 (in millions of dollars)

Note: Funding presented reflects approved reference levels at the time of Main Estimates, Supplementary Estimates (B), and the Operating and Capital Budget Carry Forwards.

The following table provides a detailed explanation of these changes. *

* Some explanation of changes refer to Coast Guard initiatives or projects. These are included as DFO is required to report on these items up until the coming into force of the Order in Council on September 2, 2025.

2.2 Significant changes in expenditures

In the third quarter of 2025-26, total budgetary expenditures amounted to $488.1 million compared to $1,139.2 million reported in the same quarter of 2024-25. This represents a decrease of $651.2 million, or 57.2%.

Decreases are largely due to the transfer of the Canadian Coast Guard (CCG) to the Department of National Defence (DND) and are explained as follows:

• Vote 1 - Net Operating expenditures (decrease of $266.4 million or 45.9%)
  This variance is mainly attributed to a decrease in salary and vessel fuel expenditures.
• Vote 5 - Capital expenditures (decrease of $369.9 million or 85.6%)
  This variance is mainly attributed to a decrease in construction engineering and architectural service expenditures as well as repair and maintenance expenditures.
• Vote 10 - Grants and Contributions expenditures (increase of $0.02 million or 0.02%)
  This variance is mainly attributed to a timing difference in payments related to the Licence Retirement Program, offset by the transfer of the CCG to the DND.
• Statutory – Authorities used (decrease of $14.8 million or 31.1%)
  This variance is mainly attributed to a decrease in contributions to Employee Benefit Plans which is related to the reduction in salary expenditures.

Comparison of authorities used, by Vote, during the third quarter of fiscal years 2024-25 and 2025-26 (in millions of dollars)

As reflected in Table 2: Departmental Budgetary Expenditures by Standard Object (unaudited), the net decrease by standard object is mainly attributed to:

Decreases are largely due to the transfer of the Canadian Coast Guard (CCG) to the Department of National Defence (DND) and are explained as follows:

• Personnel (decrease of $206.5 million)
  This variance is mainly explained by a decrease in salary expenditures.
• Transportation and Communications (decrease of $10.2 million)
  This variance is mainly explained by a decrease in travel expenditures.
• Professional and Special Services (decrease of $308.0 million)
  This variance is mainly explained by a decrease in construction engineering and architectural service expenditures.
• Repair and Maintenance (decrease of $6.8 million)
  This variance is mainly explained by a decrease in repair and maintenance expenditures related to the Vessel Refit Program.
• Utilities, Materials and Supplies (decrease of $39.7 million)
  This variance is mainly explained by a decrease in the use of vessel fuel.
• Acquisition of Machinery and Equipment (decrease of $82.5 million)
  This variance is mainly explained by a decrease in vessel dry docking and betterment work. This is partially offset by an increase in expenditures related to the Polar Icebreaker Project and the Polar Max vessel.
• Sales of Goods and Services (decrease of $10.8 million)
  This variance is mainly explained by a decrease in the collection of marine service and wharf fees.

3. Risks and uncertainties

Fisheries and Oceans Canada operates in a dynamic environment that is affected by a number of factors, including: northern development; evolving relationships with Indigenous partners; climate change; demographics; technological advances; and global geopolitical and economic conditions. The Department maintains a Departmental Risk Profile which assesses corporate strategic risks, which if not managed and mitigated, could impair DFO’s ability to deliver on its mandate and achieve results under the Department’s core responsibilities. Additional information regarding the Department’s key risk areas is presented in the 2025-26 Departmental Plan.

Certain risks would have financial impacts should they materialize such as affecting the timing of transfer payments, which lie outside the control of the Department and could require funds to be shifted to future years to meet program requirements. To minimize these impacts, the Department continuously monitors program funding and expenditures throughout the year. In addition, the Department has put strategies in place such as the Centralized Financial Prioritization Model to ensure accountability and objectives are met.

As the Government maintains its efforts to manage growth and ensure efficient use of taxpayer money, Fisheries and Oceans is focused on reducing spending in strategic areas, with minimal impact to service standards. With continued fiscal constraint measures on the horizon, the focus on efficiency and value for money will be at the forefront to reflect an evolving financial and socio-economic landscape, as well as the continual support of regional representation, including a diverse public service workforce.

4. Significant changes in relation to operations, personnel and programs

The following changes in relation to operations, personnel and programs were made since the last published quarterly report:

• The appointment of Patrick Amyot, CPA, as Assistant Deputy Minister and Chief Financial Officer, Chief Financial Officer Sector, as of October 9, 2025.
• The retirement of Deputy Minister Annette Gibbons.

5. Approval by senior officials

Approved by:

6. Appendix

Table 1: Statement of authorities (unaudited)

(in thousands of dollars)

* Includes only Authorities available for use and granted by Parliament at quarter-end.

Table 2: Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)

* Includes only Authorities available for use and granted by Parliament at quarter-end.